The House of Representatives Committee on Industry says it is pushing policy reforms and increased budgetary allocations for financial support across various critical sectors, primarily focusing on the industrial and energy sectors to bolster economic growth and regional stability.
Speaking during a visit to the BOI office in Lagos and a tour of some key projects funded by BOI, the Chairman of the Committee, Enitan Dolapo-Badru, emphasised the importance of supporting banking institutions like BOI, which offer single-digit interest rates, as crucial for the survival and competitiveness of domestic industries.
According to him, “industries are suffocating under high interest rates, noting that without remedial action, sectors crucial for the economic backbone like manufacturing will continue to decline and the demise of once-thriving companies such as Dunlop and Michelin, underscoring the dire need for financial structures that can truly support the industry.
“This is why these loans, according to the committee, are crucial for small and medium-sized enterprises (SMEs) that would otherwise struggle under the burdensome interest rates charged by commercial banks, which can soar between 20 to 30 percent.,”
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In response, the Executive Director of Micro, Small and Medium Enterprises at the Bank of Industry (BOI), Omar Shekarau, detailed ongoing efforts to address these concerns while calling for legislative support for more funding to help finance projects and businesses.
He said BOI has expanded its reach in the northeastern states, by setting up more accessible offices and offering tailored financial products designed to foster SME development
He announced BOI’s plan to invest more funds into programs specified for rural areas as well as commencing special projects for women, SMEs and youths, while also relaunching two of its programs targeted at small businesses and young entrepreneurs.
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