Connect with us

SMEs

BOI Impacts On 4m SMEs In Five Years

Published

on

The Bank of Industry (BOI) said it has impacted over four million Micro, Small and Medium Enterprises (MSMEs) through its Growth Platform, unlocking productivity and rolling back poverty in the last five years.
Managing Director of the Bank, Olukayode Pitan, said yesterday at the official launch of ‘Aid for Productivity’, a report that chronicles the bank’s Growth Platform achievements.
Pitan stated further that the platform is Africa’s largest executor of MSMEs’ business interventions, employing technology, big data with an extensive field agent network to deliver programmes targeted at MSMEs.
According to him, the report surveys the achievements and insights into the programme’s revolutionary future potentials.
He said: “The good thing of the Growth Platform is to digitise millions of MSMEs and provide tranches of capital to them. This enables them to raise their productivity and incomes, strengthen their sustainability and contribute to job creation and economic development.
“The focus of the Growth Platform is a fundamental shift from aid for survival to aid for productivity.
“Growth Platform offers a seamless process, technology and field infrastructure for funds delivery to MSMEs, with the power of biometrics, BVN as digital collateral, mobile data, mobile wallets and strong network. Growth Platform can properly target, document, profile and deliver social interventions to MSMEs at a large scale.”
He stressed that BOI is ambitious in onboarding 25 million MSMEs by 2025.
The report was unveiled by the Vice President, Prof. Yemi Osinbajo, who attributed the successes of the bank to the effective use of technology as well as the social network programmes put in place by the Federal Government.
“Growth Platform has been a powerful generator of opportunities for young entrepreneurs. People aged 18 to 35 make up 57 per cent of GEEP’s beneficiaries. The programme has also tackled the problem of women’s financial exclusion head-on, and today, the majority of its beneficiaries are female.
“Through GEEP alone, BOI has disbursed capital to over one million women-led MSMEs and helped over 150,000 of them to open bank accounts for the first time”, the Vice President said.

Print Friendly, PDF & Email
Continue Reading

SMEs

AfDB Earmarks $500m For Women In 2022  … Raises $5bn For  Businesses

Published

on

President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, says the bank would lend $500 million to women in 2022.
This follows the bank’s Affirmative Action for Women in Africa (AFAWA), which is raising the sum of $5 billion with the support of the French President, Emmanuel Macron and G-7.
This was disclosed  in a statement Adesina posted, weekend, in which he also said the bank paid out $483 million to financial institutions to lend to women’s businesses in 2021.
Adesina, whose statement is coming as the bank commenced its Annual Meetings for 2022,  commended the Board, Management and staff  for their relentless work.
He also thanked all the bank’s 81 shareholder countries for their incredible confidence and support.
Adesina in his remark said, “Our rapid Covid-19 response facility helped towards stabilising African economies: it trained 130,000 health workers, provided social protection for about 30 million vulnerable households, and provided advisory support for 300,000 small and medium-sized businesses.
“To tackle food crisis from Russia/Ukraine crisis, our Board of Directors approved last week a $1.5 billion Africa Emergency Food Production Facility to support 20 million farmers to produce 38 million metric tonnes of food. The bank partnered globally. We delivered.
“To help Africa adapt to climate change, the bank is partnering globally. Together with Global Centre for Adaptation, with former UN Secretary-General, Ban Ki-Moon, we are mobilizing $25 billion in support of Africa.
“With the support of President Emmanuel Macron and G-7, our Affirmative Action for Women in Africa (AFAWA) is raising $5 billion for women businesses.
“In 2021, we paid out $483 million to financial institutions to lend to women businesses. We will lend $500 million for women in 2022.’’
The AfDB boss said the board had approved a crisis response facility of up to $10 billion based on rigorous risk assessments when the Covid-19 pandemic struck, adding that it launched a $3 billion Covid-19 social bond on the global capital markets, the highest ever US dollar-denominated social bond in world history.
He said, “The African Development Bank was ranked by Global Finance as the Best multilateral financial institution in the world in 2021. The African Development Fund was ranked by CGD as second best in the world, ahead of all 28 concessional financing institutions in developed countries”.

Print Friendly, PDF & Email
Continue Reading

SMEs

Firms, Businesses Await CBN’s Decision On Rates

Published

on

There is apprehension in the economic circles over the direction of monetary policies as the Central Bank of Nigeria (CBN) continues to review its economic policies in order to decide on exigent monetary policies in view of global and national outlooks.
Investment bankers, financiers, investors, business owners, as well as  research and advisory experts agreed, Monday, that the decisions of the apex bank’s Monetary Policy Committee (MPC) will have a significant influence on the general economic outlook, including the flows of investments between the fixed and non-fixed security markets.
But experts differed on the possible headline decision by the apex bank. While the majority feel that the time is ripe for the CBN to abandon its long-running dove stance and hike the Monetary Policy Rate (MPR).
Many experts said the bank may opt to retain the rate, its classical policy view in the recent period. The MPR has been unchanged at 11.50 per cent since September 2020, until yesterday when it was changed to 13.5 percent.
Financial Derivatives Company (FDC), headed by Bismarck Rewane, a member of President Muhammadu Buhari’s Presidential Economic Advisory Council (PEAC), said there was “no more room for the MPC to wiggle” with the continuing high inflationary trend.
The National Bureau of Statistics (NBS) last week released its latest inflation report, showing that consumer price inflation rose for the third consecutive month to 16.82 per cent in April 2022, the highest level in eight months.
While there was almost consensus by analysts on inflation increase, the slope of the curve was steeper than expected: some 50 basis points above the average projection and 72 basis points above the International Monetary Fund’s (IMF’s) 2022 country projection of 16.1 per cent.
“The probability of monetary tightening has become infinitely more likely. If the CBN were to hike rates at its next MPC meeting, it would not be an outlier.
“This is because most apex banks in both advanced and emerging economies, including Sub-saharan Africa, have begun another cycle of aggressive tightening and increase in interest rates to dampen inflation,” FDC stated.
“In all, we think the Committee would retain the MPR at 11.5 per cent alongside other monetary policy parameters.
“However, we do not rule out the possibility of a 50 basis points hike in the MPR given the hawkish rendition among global central banks and the indirect impact of the Russia-Ukraine crisis on domestic inflationary pressures,” Cordros Capital stated.
According to the  FDC, the unrelenting rise in inflation supports the argument for a rate hike.
Former President of Chartered Institute of Stockbrokers (CIS) and Managing Director, Arthur Stevens Asset Management Limited, Mr Olatunde Amolegbe, said rate retention appeared to be unsustainable in the light of current economic realities.
He said: “The CBN has maintained the same monetary stance since 2020 but this is appearing to be unsustainable now with the increasing pressure on Naira and the tightening stance that we are seeing in the developed markets, which is likely to put further inflationary pressure on our economy.
“The recent inflation figures would have also sent warning signals to the CBN of the need to act quickly and decisively. I, therefore, think it might be time for them to lean towards a gradual tightening regime aimed at stemming naira depreciation and controlling inflation.”
The naira depreciated by 1.2 per cent to N606.00 per dollar at the parallel market at the weekend, just as Nigeria’s foreign exchange reserves (forex) fell to their lowest level in eight months to $38.84 billion. But the naira was flat at N419.03 per dollar at the official Investors and Exporters (I & E) Window.
On the domestic front, the sharp increase in headline inflation to 16.82 per cent in April 2022, the highest since August 2021 will be a cause for concern to committee members, particularly as the trend will continue in the coming months due to the pass-through impact of elevated global energy prices.

Print Friendly, PDF & Email
Continue Reading

SMEs

Cooperative Woos SMEs On Business Plans

Published

on

The President/Chief Executive Officer (CEO) of iEBS Matrixx Cooperative and Credit Society Limited, Dr Larry Goodwill Ajiola, has reiterated the need for entrepreneurs to draw business plans before raising any money for the business.
Ajiola, who made this known in a forum in Port Harcourt, said the mistake of waiting for the money before drawing business plans  leads to regrets.
He noted the danger and temptation of diverting the business funds to other pressing areas during the time of planning, stating that “drawing the business plans before the capital comes remains the best for any serious-minded Small and Medium Enterprises (SMEs) owners”.
Ajiola, who is also a UN Eminent Peace Ambassador, drew the attention of iEBS Cooperative members to businesses that would benefit members, especially those who do not have business  ideas ahead the expected grants that would soon come to the members.
“Read the following business opportunities in Nigeria and draw plans before you get either your Supreme or Theoberth grants.
“Cashew nuts exportation business, Palm Oil business, Blue  Collar business, among others”, he said, stressing that “there are profitable businesses for SMEs”.
The Ambassador, who is also an international SME business consultant stated that diverting business capitals to other things due to delay in drawing business plans accounts for many businesses that have been shut, saying that “money does not stay in people’s hands. Immediate investment has always been the best for SMEs”.
He emphasised the need for government to pay more attention to SMEs, stressing that “the economy of the nation can experience a turn around if Nigeria will invest in building healthy SMEs”.

By: Lilian Peters

Print Friendly, PDF & Email
Continue Reading

Trending