The Bank of Industry (Bol) has co-launched a N2 billion Micro, Small and Medium Enterprises (MSMEs) development fund with the Benue State government.
Under the financing model, BoI will contribute N1 billon which will in-turn be matched in equal sum by the Benue State Government for on lending to mainly businesses that have high employment generating potential and value addition to local raw materials.
The signing of the agreement in Makurdi, brought the volume of MSME funds being managed on behalf of 21 state governments to N18.3 billion.
Speaking shortly after signing the agreement, Olagunju advised entrepreneurs to invest in the agricultural value chain which the state has comparative advantage.
The BoI boss also urged the governor to create industrial parks where beneficiaries of the loans would be able to leverage on infrastructure facilities to reduce operation cost.
On the significance of the parks, Olagunju advised the Governor to” establish industrial parks, at least, one in each senatorial district where amenities will be provided and where other infrastructure will be provided.
They will share the facilities. “Where that happens, it will reduce their start-up cost and operating expenses. It will increase their viability prospect.
They will share knowledge, experience and there be synergy. Apart from that, operating in industrial parks also makes credit administration easier because financial institutions would readily be able to locate them”,
He also urged the governor to adopt the Kaduna State model where only the people who had 20 gone through capacity development programme and in the process, came up with viable business proposal, were eligible to get loans under the scheme.
Olagunju hinted that while 21 states had been enlisted in the scheme, discussions with the remaining 15 states had reached advanced stage.
