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BoI, development partners seal N10b agro-mechanised deals to grow SMEs

Amidst survival efforts to avoid eventual scrapping as soon as possible, the Bank of Industry (BoI) has signed three Memoranda of Understanding (MoUs) worth N10 billion with development partners.

Coming on a single digit of nine per cent to small holding farmers, the bank said strategic value addition and processing will also be covered so that the country can have a viable agriculture value chain.

Division Head, SME, South, Abdul-Ganiyu Mohammed, explained the new window is designed to fast track Micro, Small and Medium Enterprises (MSME) lending via cluster product programme.

Mohammed also said in order to collateralise credit, which are far beyond the reach of SMEs, the BoI came up with clustering where finance institutions will see SMEs in groups rather than individuals.

According to him, youths are being incorporated with one-digit interest rate to address unemployment in the county.

Explaining more on the meaning of agro mechanisation which he said is essential for economic growth. the Executive Director, Corporate Services, Jonathan Tobi, BoI is doing more to move agriculture beyond the use of hoes and cutlasses which has continued to discourage the youths from going into agriculture.

Earlier in his welcome address at the MoU signing, the Acting Managing Director of the bank, Waheed Olagunju, argued that with the emerging collaboration with relevant partners, more youths will be captured into the agri-business basket of the nation.