Role of bank of industry in financing small and medium enterprises

Small and Medium Enterprises (SMEs) play a significant role in the economic development of every nation particularly in developing countries like Nigeria. SMEs constitute over 90% of Nigerian businesses (Oyelarin -Oyeyinka, 2010), account for over 25% of total employment and contribute about 20% to the Gross Domestic Product GDP of the country, (SMEDAN, 2007). The development, encouragement, and sustenance of the SME sub sector is considered globally as a crucial strategy for economic growth, job creation and poverty reduction. It is in realization of this consideration that many Development Finance Institutions (DFIs) were established over the years by the Federal Government of Nigeria with the responsibilities of rendering financial assistance to Small and Medium Enterprises. One of such DFIs is the Bank of Industry.