The Bank of Industry (BoI) disbursed N437.39 billion out of the N535 billion it got from the Federal Government for financing projects in the power and Small and Medium Scale Enterprises (SMEs) sectors of the economy.
Its General Manager, Operations, Joseph Babatunde said in a report that the funds comprised Central Bank of Nigeri’s (CBN’s) N235 billion Refinancing/Restructuring Fund (RRF) of commercial banks’ loans to the SMEs sector and N300 billion Power and Aviation Fund (PAIF). Both were okayed by the Federal Government in 2011.
He said of the RRF’s, N229.18 billion was disbursed in March, adding that it was targeted at refinancing commercial banks’loans to SMEs in the manufacturing sector. The fund, he explained, is expected to enhance the liquidity of commercial banks and facilitate more credits to the real sector.
According to him, the loans were given at seven per cent interest rate per annum with up to 15 years tenor and allows for additional working capital and supplementary plant and machinery.
He said so far, 23 commercial banks and one DFI participated in the scheme while over 525 companies have benefited from the scheme.
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