The federal government said it has successfully disbursed approximately N785 billion through the Bank of Industry (BoI) to over 10 million MSMEs.
The disbursement was made between 2019 to July 2022.
The government explained that this was made possible by BoI expanding its capital base to $5 billion with international partners such as AFREXIM and Credit Suisse, among others.
Minister of industry, trade and investment (FMITI) Otunba Adeniyi Adebayo, made this disclosure yesterday in Abuja as part of the ongoing presentation of Ministerial Score Card by various ministries as being organised by the Ministry of Information and Culture.
Adebayo explained that the ministry revised the MSME Policy to drive the growth and competitiveness of MSMEs in the country.
He further revealed that his ministry has successfully increased the nation’s capacity to fund tech -driven MSMEs by securing the $500 million Technology Fund through Nigeria’s collaboration with the African Development Bank (AfDB).
“Furthermore, in the aftermath of the COVID-19 Pandemic, the MSME Survival Fund Initiative was launched as part of the Nigerian Economic Sustainability Plan (NESP), which protected MSMEs from the shock of the COVID-19 Pandemic,” he said.
According to him, as of July 2022, N67.5 billion had been distributed to over 1.2 million beneficiaries, saving, and creating jobs.
“On creating an Enabling Business Environment to attract and retain investments, the ministry and the Nigerian Investment Promotion Council (NIPC) are committed to attracting and protecting investments that genuinely benefit Nigeria and its citizens,” he stated.
Adebayo said building on this success, Nigeria has successfully revised its model Bilateral Investment Treaty (BIT) to include a specific provision for investment facilitation, which institutionalises the principle of assisting investors in completing their investments.
“We are proud to offer Nigeria’s first investment policy to the Federal Executive Council for approval. This strategic statement, which will outline our priorities, aims, commitments, and expectations, is a turning point for the Federal Ministry of Industry, Trade, and Investment and Nigeria as an investment destination.
“We also have IPPAs with Singapore, Morocco, and Saudi Arabia to attract and retain investments. President ratified both accords on September 16, 2022. We are developing more IPPAs,” he said, while stating that
FMITI distributed 5,571 Acceptance Certificates worth N7.7 trillion to 2,665800 firms. “The Acceptance Certificate allows businesses claim tax reduction when computing Company Income Tax.
“We issued over 130 Production Day Certificates, a crucial Pioneer Status Incentive step.
Since 2016, FMITI has issued approximately 4,000 Export Permit Certificates to oil and gas businesses to export petroleum products.
“Oil and gas exports are worth $470 billion Free-on-Board.
“Finally, we have issued over 18,000 patents to companies to protect their intellectual property and commercialise innovation to improve investor and innovator confidence.
“The National Policy on Micro, Small, and Medium Enterprises advances MSME growth. We know this crucial sector struggles. The policy helps resolve these concerns. The MSME Market Hub facilitates customer-MSME relations,” he said.
He expressed optimism that the $500 million Investment in Digital and Creative Enterprises (iDICE) fund might revolutionise Nigeria’s digital and creative MSME sector.
‘The BoI, African Development Bank, Islamic Development Bank, and Agence Française de Development sponsor the fund.
“The Bank of Industry has given grants and low-interest loans to 4.3 million MSMEs through various intervention initiatives.”
Speaking on the success of AfCFTA, Adebayo said, “We formed a National Action Committee (NAC) to coordinate and steer Nigeria’s implementation strategy to ensure Nigeria benefits from continental commerce, the NAC would continue to engage all stakeholders.
This administration’s Nigerian Office for Trade Negotiations (NOTN) has updated our Free Trade Agreement and Mutual Recognition Agreement templates to address lopsidedness and other shortcomings. Nigeria’s goods and services would be recognised worldwide with the upgraded templates.
Reactivating the multi-sectoral Enlarged National Focal Point on Trade has improved WTO and AfCFTA negotiations.”
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