Industry bank gives $1.5b to manufacturers
Nigeria’s Bank of Industry (BoI) has offered $1.5billion to manufacturers and also those in the oil sector to boost content.
The BOI’s Managing Director, Mr. Kayode Pitan, stated at an event organised by the Manufacturers Association of Nigeria (MAN) in Lagos where he spoke on “Mainstreaming policies to catalyse industrial renaissance”.
He said the funds – $750 million was from international banks and N800 million from the Nigerian Content Board.
He 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.
Pitan, who was represented by the General Manager Large Enterprise, Joseph Babatunde, urged local operators into agro-processing, solid minerals, movies and theatres to harness the low interest loans to grow their businesses.
Nigeria Managing Director Development Bank Tony Okpanachi said the bank provides Micro Small and Medium Enterprises (MSME) 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.
Nigerian Maritime Administration and Safety Agency (NIMASA) Director-General Dr Dakuku Peterside called for long-term credit at single digit interest rate for the manufacturing and maritime sectors.
Peterside, who spoke on “Promoting manufacturing through approved port infrastructure and access to long-term credit window’’, 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 hubs at the ports to cut transportation cost. Peterside represented by Dr Maduka Ozili, Assistant Director, Shipping Promotions, NIMASA urged government to allocate space at highly subsidised rates at the ports for investors to establish manufacturing plants.
Furthermore he asked for special ports to be designated for raw materials and export business which according to him that is the only way the sector can grow.
He said: “The Federal Government should be encouraged to invest in cargo handling and the acquisition of expansive land mass at ports for easy export of manufactured goods.