The Commercial and Development Banks are contributing a lot towards the promotion of small and medium enterprises especially in the various functions they carry out in their day-to-day operations.
The potential entrepreneurs are therefore to benefit from the functions and assistance rendered by these financial institutions.
Financial Institutions Involved In Entrepreneurship Development The Nigerian Industrial Development Bank (NIDB), the National Economic Reconstruction Fund (NERFUND), and the Nigerian Bank for Commerce and Industry (NBIC) have been brought together to form the Bank of Industry (BOI).
On the other hand, the Family Economic Advancement Programme (FEAP), Peoples Bank of Nigeria (PBN), and the Nigerian Agricultural and Cooperative Bank (NACB) have become a single Bank, the Nigerian Agricultural, Cooperative, and Rural Development Bank (NACRDB).
Related:
- Entrepreneurship Supportive Agencies in Nigeria
- Sources of Business Financing for Entrepreneurs (Nigeria as Case Study)
- Various Sources of Information for Entrepreneurship Development
- Activities of Different Industrial Association In Relation To Entrepreneurship
- 8 Good Sources of New Business Ideas and Opportunities
Bank of Industry (BOI) The Bank of Industry (BOI) is owned by the Federal Government of Nigeria. This bank emerged from the government’s rationalization of some development Finance Institutions (DFIs) namely the Nigerian Bank for Commerce (NBCI), Nigerian Industrial Development Bank (NIDB), and the Nigerian Economic Reconstruction Fund (NERFUND).
The Bank of Industry has four subsidiaries from its merger:
- Leasing Company of Nigeria (LECON)
- NIDB Trustees Limited (NTL)
- NIDB Consultancy and Finance Limited (NIDB Consult)
- Industrial and Development Insurance Brokers (IDIB)
Types of Projects Financed by BOI
- Projects in the areas where Nigeria has a comparative advantage
- Projects that engage in the efficient conversion of local raw materials into finished products
- Ventures that can be the least cost producers of good quality products that could be successfully marketed locally and/or internationally.
Products and Services Deliverable by BOI
- Medium and Long-term loans.
- Working Capital Finance
- Equity Financing
- Management of dedicated funds
- Loan guarantees
- Co-financing
- Investments in Corporate Boards
- Business Development Services
- Lease financing
- Trusteeship
- Stock Brokerage
- Foreign Exchange Dealership
- Insurance Brokerage
The huge SMIEIS funds currently accumulated by the Banks will help BOI fulfill its mandate. It is expected that the bank’s contribution to the economy will grow stronger as the implementation of the economic reforms progresses to widen the scope of needs for economic/business development financing.
Photo by Expect Best from Pexels
15 comments
Most Small scale enterprises in developing countries with low capital formation, underdeveloped money market and high unemployment mostly raise capital through loans from family and friends because at the initial stage, majority of young budding entrepreneurs lack laudable forms of collateral, as well as bank credibility.
Sir/ma.
Kindly advise me on how to get some assist fund to my capital for my Investment.
Thanks
I want to know why lagos state government want to stop the pure water entreprenueship. i will suggest that if there are problem/issues that they are experiencing, solution should be sought like asking them to put collection bins around their consumption areas to collect their waste because banning them will amount to closing a source of fund for many people and entreprenue. also disposals of pure water shachets are much easier and smaller in volume than bottle water. please let the body of entreprenueship advice the government. I also have solutions on how to dispose shachets of pure water instead of clossing down an enterprise. pls pass this message to lagos state government
Hi Obi, have you considered writing to the governor with your proposal?
i have not considered it, how do i
pls i need a project on THE ROLE OF COMMERCIAL BANKS IIN FINANCING SMALL SCALE INDUSTRY ( case study of fidelity bank).
If entrepreneurship can b creative and developed amongst the up coming youths Nigeria wil be a wonderful place 2b nt knowing if we hv govt jobs, unemployment wl b scarce and poverty eradicated. Please make more awarenes and creativity about entrepreneurship in Nigeria
Plz i want to know, the roles play by the insurance in the development of commerce in my country Nigeria.
pls can i get a material on dis pls ” appreciate the role of commercial and development bank in small scale industrial development
[…] Roles of Commercial and Development Banks in the … – Roles of Commercial and Development Banks in the Promotion of Small and Medium Enterprises (SMES) […]
Pls I to know how the business enterprise get sources of fund in Nigeria
what are the role of commercial bank in MSME ?
good day people.
please where should I go to get a grant to grow my small scale business.
I have been trying all by myself but its not working. anybody with useful information should please put it across to me on my private mail or text through +234…. Reply to the comment.
thanks alot
[…] 5. Roles of Commercial and Development Banks in the Promotion of Small and Medium Enterprises https://www.entrepreneurshipsecret.com/roles-of-commercial-and-development-banks-in-the-promotion-of… […]
The rate of enterpreneurs in this country is reducing government be aware
Comments are closed.