Business
BOI Boosts MFBs’ Penetration Through On -Lending
The management of the Bank of Industry (BOI) has boosted the penetration of three microfinance banks in the country into the rural communities to improve living conditions and lift Nigerians out of poverty through on – lending facilities under the bank’s Bottom of Pyramid (BOP) scheme.
Speaking to newsmen recently, the Acting Managing Director, BOI, Mr. Waheed Olagunju, said that the BOP scheme was an on – lending initiative using the services of microfinance banks as channels for credit delivery to the under-served and under banked entrepreneurs.
Olagunju said that the scheme was designed to leverage the spread and penetration of the participating financial institutions in all parts of the country in order to stimulate economic activity within the critical mass under the BOP scheme, adding that the BOI decided to work with microfinance banks because lending to micro enterprises requires special skills that the MFBs have acquired over time.
Meanwhile, the BOI has presented cheques worth two billion Naira to three Microfinance banks (MFBs) to support the Micro, Small and medium Enterprises (MSMEs) and poverty eradication in the country.
The three MFBs included, LAPO Microfinance Bank which got one billion Naira, while Fortis MFB and Lotus Capital Limited got N500 million each, respectively.
The BOI’s boss said that the bank had previously disbursed N1.1 billion to 11 microfinance banks under the BOP scheme, stressing that the inclusion of the three MFBs will bring the number of such partnership to 14 total disbursement standing at N3.1 billion.
Olagunju said BOI management has also approved 9 other MFBs in the sum of N1.13 billion currently undergoing the disbursement process.
He said the BOP scheme is in tandem with the Federal Government’s wealth creation and employment objectives especially in line with the National Enterprise Development Programme (NEDEP).