Banks screen SMEs’ business plans for financing

                                 

PANELISTS from twelve Nigerian and Pan-African banks have screened more than 100 SMEs business plans in order to provide them with financial aids. The SMEs were vying for the Bank of Industry, (BoI), the Western Union Company, USAID African Diaspora Market (ADM) funds. The SMEs were drawn from six key development sectors of the economy such as information and communications technology (ICT), agro-business, manufacturing, retail, renewable energy, and innovations in mobile platforms. Ms. Evelyn Oputu, Managing Director, BoI, who disclosed this during the 2nd annual SME live banking panel organised by the bank with her partners, said: “BoI has been working with SMEs for over a decade now and has continually underscored their key role in not only driving growth, but job creation.

She stated that BoI is Nigeria’s oldest, largest and most successful development financing institution.

“It was reconstructed in 2001 out of the Nigerian Industrial Development Bank (NIDB) Limited, which was incorporated in 1964. The bank took off in 1964 with an authorised share capital of 2 million pounds (GBP). The International Finance Corporation, which produced its pioneer Chief Executive held 75 percent of its equity along with a number of domestic and foreign private investors. Although the bank’s authorised share capital was initially set at N50 billion in the wake of NIDB’s reconstruction into BoI in 2001, it has been increased to N250 billion in order to put the bank in a better position to address the nation’s rising economic profile in line with its mandate.

“Following a successful institutional, operational and financial restructuring programme embarked upon in 2002, the bank has transformed into an efficient, focused and profitable institution that is well placed to effectively carry out its primary mandate of providing long term financing to the industrial sector of the Nigerian economy,” said Oputu.

“As we co-host the 2nd SME Annual event, along with our partners, we want to again stress its uniqueness, and acknowledge the great banking partners who have recognised the role of SMEs in development, and are willing to help address the access to financing issues they face.”

“When our customers grow, the economies in which they live benefit,” said Aida Diarra, regional vice president for Western Union.

Recall that last year, 70 companies from the following trade associations participated. They are Nigerian Association of Small and Medium Enterprises, NASME, and Nigerian Association of Small Scale Industrialists , NASSI; Manufacturers Association of Nigeria  and Nigerian Association of Chambers of Commerce Industry Mines  and Agriculture, NACCIMA, as well as Nigerian Employers Consultative Association. They vied for two million dollars funding facility.

Source: vanguardngr.com