37 million commercially active Nigerians don’t have access to bank loans – BOI


Toyin Adeniji, Executive Director, Micro Enterprise, Bank of Industry (BOI), has said that 37 million Nigerians are commercially active but have never had the opportunity to access loans.

Mrs Adeniji made the fact known in Abuja on Friday when she briefed journalists on federal government empowerment programmes under the supervision of BOI.

She said the commercially active people, who were at the base of the pyramid, included traders, artisans, farmers, petty traders, among others.

She said data from National Bureau of Statistics and Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) report revealed the situation.

According to her, the group constitutes the highest per cent of the country’s workforce.

“According to the report, Micro, Small and Medium Enterprises (SMEs) employ 84 per cent of labour force, contribute 50 per cent to our Gross Domestic Product (GDP) and some also contribute seven per cent of our total exports as a country.

“However, despite their contributions to national development, these businesses often do not have access to the capital they need to grow.

“Of all the bank loans given in the last five years in Nigeria, less than one per cent has gone to this segment.

“These are understandably so because these groups, while extremely hardworking, have little or no financial track record.

“They have no collateral and some barely have formal identities, “she said.

Mrs Adeniji said that the Federal Government in 2016 introduced Government Enterprise and Empowerment Programme (GEEP) to support and encourage the people to continue with their contributions to economic development.

She said that GEEP was developed for the over 37 million Nigerians at the base of the pyramid.

“GEEP is a microcredit scheme and therefore, the more commercial of the social interventions of the Federal Government,” said.

According to her, many Nigerians at the base of the pyramid such as traders, farmers, tricycle riders and artisans, have benefited from GEEP loans.

The director added that the conditions for accessing loans were not as stringent as those of the commercial banks.

“The conditions include possession of a Bank Verification Number (BVN) and a membership of a certified market association or cooperative society among others,” she said.


Previous articleAccess, Diamond Merger to Be Finalised in April
Next articleHerdsmen attacks: 483,699 IDPs in camps
Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.