Business
MSMEs Financing: BoI Strengthens Relationship With Group
The Bank of Industry (BoI) says it has set up mechanism to improve relationship with its over 200 Business Development Support Providers (BDSP) across the country.
BoI said the aim was to deepen financing of the Micro, Small and Medium Enterprises.
The Managing Director of BoI, Mr Kayode Pitan, announced this on Monday in Lagos, during an interactive session with stakeholders on the operation of the bank’s BDSP Scheme.
Pitan, represented by Dr Waheed Olagunju, the Executive Director, SMEs said that the country’s private sector was not as developed as it ought to be, thus necessitating the need to deepen its entrepreneurship space.
He said that the BDSP scheme was created in 2014, to bridge the gap of access to finance, entrepreneurial development, assist MSMEs develop bankable business plan to facilitate finance and improve their record keeping.
The BDSPs are also expected to support SMEs develop synergies and sustainable relationships with large enterprises, industrial buyers and suppliers along the value chain.
“We plan to grow our risk asset to N1.29 trillion by Dec. 2019, and presently our risk assets is in the region of N600 billion and we hope we can double this figure in the next 18 months.
“We cannot do this on our own, given the size of this country and numbers of entrepreneurs that we intend to reach.
“We are trying to increase the contribution of MSMEs from less than 10 per cent of our risk assets to at least 30 per cent by 2019.
“We are looking at about N376 billion and we are looking to disburse this amount to about 9,600 entrepreneurs across the country, approximately about 10,000 entrepreneurs.
“Given the size of Nigeria, BoI as a DFI cannot effectively engage more than 10,000 entrepreneurs effectively and efficiently, that is why we are working with partners, collaborating with Enterprise Development Centres and BDSPs across the country,” he said.
Pitan noted that there was the need to collaborate and leverage on the expertise of the BDSPs to evaluate and access the character, competency and viability of the 10,000 enterprise across the country.
He urged the BDSP operators to attract quality customers with viable business plans that would effectively utilise the loans in order to achieve an inclusive and sustainable economic growth and development in the country.
“To achieve this inclusive growth, we need to intervene more in the MSMEs space because that is where the developmental impact and multiplier effects of investment is much higher,” he said.
Pitan said that the bank was taking steps to review the BDSP scheme and would continue to engage the operators on the modalities that would serve the interest and growth of MSMEs in the country.
Mr Simon Aranonu, the Executive Director, Large Enterprises, BoI said that the collaboration between the bank and BDSP operators was critical to catalyse growth of MSMEs in the country.
According to him, MSMEs requires more than capital to grow.
“We are relying on you to assist the MSMEs get structure, hand hold them, improve their capacity, inculcate in them sound corporate governance and enlighten them on global best practices.
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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