In a bid to promote locally made products that of international standards, the Bank of Industry (BOI) has made provision of N400 million that would be available quarterly for local manufacturers.
The Development Finance Institution, through a recently launched Aba Finished Leather Goods Cluster Financing Programme, would make the funds available quarterly to over 300 members of the Leather Products Manufacturers Association of Abia State (LEPMAAS).
The scheme targeted at over 150,000 artisans, will see beneficiaries accessing the funds for the procurement of materials for expansion and to improve production which is expected to boost import substitution.
“By providing low interest, non-collaterised loans, the Bank has provided flexibility for qualified members of LEPMAAS recommended by their lines and zonal chairman to access up to N300,000 towards the procurement of materials to expand and improve their production activities”, the Managing Director of BOI, Olukayode Pitan said of the scheme.
The funds would be disbursed through the Fidelity Bank Plc while the Ford Foundation would be providing other technical support.
BOI is fulfilling its mandate of providing financial assistance for the establishment of large, medium and small projects, as well as their expansion.
Recall that the financial institution, had in June, 2018, unveiled a ₦1 billion fashion fund aimed at supporting fashion entrepreneurs.
The unveiled fund is specifically designed to benefit those involved in the production and marketing of fashion items such as clothes, handbags, shoes, jewelry/accessories etc. It will also support initiatives that can improve financial literacy and industrial entrepreneurship development for players in the fashion industry.
The BoI fashion fund, which comes in the form of loans, targets three categories of fashion entrepreneurs which are -retailers, wholesalers, and distributors.
In July, 2018, Promasidor Nigeria Limited (PNL) secured a N5.6 billion loan facility from the BOI. This was confirmed by the company’s Finance Director, Per Kristensen who said the secured loan facility will accelerate the company’s growth.
According to Kristensen, the BoI loan would be used for additional machinery, and factory expansion which would create jobs for Nigerians and positively impact on the country’s economy.