The Federal Government has announced that it has secured one billion dollar loan for a Micro, Small and Medium Enterprises (MSMEs) Wholesale Bank to aid the growth of the Small and Medium Enterprises sector. The loan is also expected to boost job creation and reduce poverty across the country.
The proposed MSME Wholesale Bank is due to be launched in a fortnight.
Unveiling the plan of the Federal Government at a meeting with business owners in Abuja on Wednesday, Nigeria’s Minister of Industry, Trade and Investment, Dr. Olusegun Aganga, stated that the proposed initiative would help to actualise the growth of Small and Medium Enterprises sector in the country.
According to the minister, the Federal Government under the leadership of President Goodluck Jonathan had supported the sector with over N115 billion to enhance job creation and poverty reduction in the past four years.
“Over the last four years of this administration, the Bank of Industry disbursed about 115 billion Naira to MSMEs across the 36 states of the federation, representing 544 per cent increase over a four year period before then. It is over what we did between 2007 and 2010.
“On funding, we as a government, has secured about one billion dollars for a new MSME wholesale Bank that the President will be launching within the next two weeks,” Aganga said.
MSMEs in Nigeria have long canvassed for improved access to funding in order to grow and expand their businesses and further contribute to the growth of the economy which is rated as the biggest in Africa.