Bank Of Industry Launches N1bn Fund For Fashion Industry
The Bank of Industry (BoI), on Tuesday in Lagos launched a N1 billion fund for Nigeria's fast-growing fashion industry.
Mr. Rasheed Olaoluwa, Managing Director of the bank, said the fund would support Small and Medium Enterprises (SMEs).
Olaoluwa added that Nigerian fashion designers were one of the most creative in the world, having trained in most of the best fashion schools across the globe.
He said the fund was an initiative under the Gender Unit of the bank, and also targeted towards women-owned businesses only.
“There has been a lot of talk about SME funding, but with less actions. This is why BoI has decided to increase its funding initiatives to cluster creations,” he said.
Mr. Babatunde Joseph, Head, Large Enterprises of the bank, said the bank had put in place risk management systems to monitor the loans.
Joseph said the criteria for the loan would be a five per cent deposit of the loan sum, two reputable guarantors, a bank guarantee, and most importantly, a business with a consistent cash flow.
Joseph said referral from standard, relevant association would also be needed to facilitate the loans, and a maximum of five million naira only would be given out to individuals.
Mrs. Funmi Ajila-Ladipo, President, Fashion Designers Association of Nigeria (FADAN), lauded BoI for the initiative.
She said the loan would encourage more fashion entrepreneurs to expand their businesses.
Mrs. Stella Awoh, representative of Yaba College of Technology Fashion School, appealed to BoI and the government to provide support for fashion interns and graduates to set up their businesses.
She said the college churns out about 450 graduates annually, who mostly end up roaming the streets because they have no funds to establish businesses.