MICROCAPITAL BRIEF: Bank of Industry (BOI) of Nigeria to Debut Government’s TraderMoni Microenterprise Lending Program

The government of Nigeria recently announced plans for a national rollout of TraderMoni, a lending service for microenterprises whose inventories do not exceed NGN 10,000 (USD 30). During the pilot phase of the project, 368 microentrepreneurs in Nigeria’s Edo State each borrowed NGN 10,000 (USD 30). The program is a component of the Government Enterprise and Empowerment Programme (GEEP), an initiative of the Nigerian government’s Bank of Industry (BOI) to boost access to credit for micro-, small and medium-sized enterprises (MSMEs).

GEEP launched in December 2016 with the MarketMoni program, which provides microloans of NGN 10,000 (USD 30) to NGN 100,000 (USD 300) to young entrepreneurs, farmers and women microentrepreneurs such as street traders and artisans. As of June 2018, the MarketMoni program has disbursed 350,000 microloans, covering all of 36 of Nigeria’s states.

Each MarketMoni loan carries a term of six months, a fee of 5 percent and no interest. Potential borrowers may apply for MarketMoni loans via the program website or one of 5,000 agents. Corresponding information on TraderMoni is not available.

Based in Lagos, BOI was incorporated in 1964 as the Nigerian Industrial Development Bank. Its mission is to promote a competitive industrial sector in the country. As of December 2016, BOI reported total assets of approximately NGN 683 billion (USD 1.9 billion) and outstanding loans and advances of NGN 518 billion (USD 1.4 billion).

By Nicholas Galimberti, Research Associate

Sources and Additional Resources

Vanguard article
https://www.vanguardngr.com/2018/06/fg-unveils-new-loan-scheme-micro-businesses/

Press Reader article
https://www.pressreader.com/nigeria/daily-trust/20180615/281569471438191

MarketMoni background
https://marketmoni.com.ng/about-2/

BOI background
http://www.boi.ng/about-us/

BOI annual report
http://www.boi.ng/downloads/2016ANNUALREPORT.pdf

MicroCapital Brief; October 5, 2017; Nigerian Government, Bank of Industry (BOI) Launch National Women Empowerment Fund (NAWEF), Charging Flat 5% Fee for Microloans Totaling $4.5m
https://www.microcapital.org/microcapital-brief-nigerian-government-bank-industry-boi-launch-national-women-empowerment-fund-nawef-charging-flat-5-fee-microloans-totaling-4-5m/

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