Business Briefs
The Bank of Industry, BoI, has offered $1.5 billion to manufacturers across the country to boost manufacturing sector of the economy. Kayode Pitan, managing director, said the funds – $750 million from international banks and N800 million from the Nigerian Content Development and Monitoring Board – were also available for the oil sector to boost the Nigerian Content.
At an event organised by the Manufacturers Association of Nigeria, MAN, in Lagos, Pitan said the bank supports emerging industries, such as the creative arts, renewable energy, biogas and gender owned business at a single digit with long gestation unlike the conventional banks. He urged local operators into agro-processing, solid minerals, movies and theatres to harness the low interest loans to grow their businesses.
Tony Okpanachi, managing director, Nigeria Development Bank, said the bank provides Micro Small and Medium Enterprises, MSMEs, well-structured loans of up to 10 years through the second tier for equipment financing, manufacturing, among others. He disclosed that the bank would establish the First SME’s Credit Guarantee Bank that would share up to 50 percent of the sectors risk. In addition, the bank is also building the capacity of small enterprises.
He said MSME’s contribute over 50 percent to the Gross Demostic product, GDP, and employs over 80 per cent of the productive work force and should be supported if the economy must grow.
On his part, Dakuku Peterside, director general, Nigerian Maritime Administration and Safety Agency, NIMASA, called for long-term credit at single digit interest rate for the manufacturing and maritime sectors. He said long-term credit would eliminate the huge overhead cost associated with transportation of materials and enhance the operations of the ports.
He said port infrastructure were capital intensive with long period of return on investment, hence required long-term credit of at least 5 per cent to encourage investors. He proposed a dedicated revolving fund for the development of infrastructure for the ports and the manufacturing sector including manufacturing at the ports to cut transportation cost.
– Oct. 5, 2018 @ 14:39 GMT |
Tags: BoI offers $1.5b to manufacturers Others
