The Bank of Industry (BOI) has reaffirmed its commitment to supporting Micro, Small and Medium Enterprises (MSMEs), describing the sector as the backbone of Nigeria's economic growth, job creation and industrial development.

Addressing newsmen in Ilorin yesterday during a facility tour of Qusymax Nig. Ltd farm at Asa Dam, the Kwara State Manager of the BOI, Femi Ashaolu, said the relevance of MSMEs to the nation's economy cannot be overemphasised, noting that "the sector remains critical to employment generation, industrialisation, local production and a leeway to the country's independence on imported goods."

According to him, MSMEs occupy a strategic position in the nation's economic value chain, which is why the BOI continues to prioritise financing and capacity support for operators across various sectors.

He explained that the impact of the relationship between BOI and MSMEs is most felt when looking at employment, industrialisation, production and how businesses help reduce dependence on imported goods, adding that MSMEs are central to economic development.

Citing data from the Corporate Affairs Commission (CAC) to prove the increasing business registrations nationwide, Ashaolu noted that the country has a large and growing number of MSMEs, many of which are actively operating within the economy.

On the bank's loan portfolio in Kwara State, the manager disclosed that though it has been a bit slow this year, the bank has "projects worth about N3 billion in Kwara State currently in the pipeline awaiting disbursement."

Meanwhile, the BOI boss identified loan repayment as a major challenge confronting development finance institutions, stressing that loan recovery remains essential for sustaining intervention programmes and enabling other businesses to access funding.

According to him, while some beneficiaries encounter genuine business challenges that affect repayment, others mistakenly view government-backed loans as grants and therefore fail to honour their repayment obligations.

"When a beneficiary refuses to repay, it deprives another entrepreneur of the opportunity to access funding. Some have genuine challenges, which is why we monitor closely and, where necessary, restructure facilities to give them breathing space," he added.

Also, the Chief Executive Officer of Qusymax Nig. Ltd, Kazeem Opeyemi, urged fresh and unengaged graduates to wholly tap the opportunities offered by the BOI for a fresh beginning, describing the bank as his personal saving grace in 2017.