The Bank of Industry (BoI) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) have struck a Memorandum of Agreement (MoA) to put together N1 billion and offer single-digit lending rates to nano and micro enterprises in Nigeria.

The two institutions are required by the agreement, which was signed in Abuja on Sunday, May 26, to give N500 million apiece to a matching fund account that will be overseen by the Bank of Industry.

BOI's Managing Director, Olasupo Olusi, during the signing ceremony said that the deal's signing is the beginning of many more fruitful partnerships between the two institutions.

SMEDAN's Director-General, Charles Odii, praised the joint technical teams and the Bank of Industry's Managing Director's efforts in establishing the connection during his speech.

Odii described the signing of the agreement as significant and a turning point in the struggle to grant Nigerian nano and microbusiness owners more democratic access to credit.

The deal allows nano firms to access up to N1.5 million, while micro-companies can access up to N2.5 million.

The director of SMEDAN's Agribusiness Development and Extension Services Department, Levi Anyika, stated that loan applicants must provide the statements of two guarantors because of the loan's security.

This loan has a 24-month term, and the annual interest rate is 7.5% for working capital loans and 5% for term loans.