Govt begins disbursement of N75b loans to MSMEs.

The Federal Government has commenced the disbursement of N75 billion single digit loan to Micro, Small and Medium Enterprises (MSMEs) through the Bank of Industry (BoI).

Senior Special Assistant to the President on Job Creation and MSMEs, Mr. Tola Adekunle-Johnson, broke the news in Abuja at a nationwide town hall meeting to sensitise MSMEs to the Presidential Grant and Loan Scheme.

Adekunle-Johnson explained that the town hall meeting was going on simultaneously in Ogun, Bauchi, Enugu and Kaduna states with a view to educate MSMEs on the conditions for accessing the loan.

He said: “We are live in Ogun, Bauchi, Enugu, Kaduna states simultaneously. In 2023 President Bola Tinubu approved some funds as palliative to cushion the effects of subsidy removal.

“We are here today to sensitise MSMEs to the loan which is currently open all over the country.

“MSMEs can work into any Bank of Industry from today and apply for this loan. It is a single digit loan, it is nine per cent, it is fixed, no hidden charges.

“This is the one and only single digit loan you can get and you can get up to N1 million.

“It is important for us to sensitise the people to this facility so that they don’t fall into the hands of people that will tell them to bring money before they can access it.”

The presidential aide said that his office had been collaborating with BoI, which is an important implementing agency for the scheme.

“If you need any information, if you are not sure of anything, go to the Bank of Industry.

“Once you provide the requirements, very quickly, you will get yours, immediately,” Adekunle-Johnson said.

The Managing Director of BoI, Dr. Olasupo Olusi, explained that the N200 billion Presidential Intervention Fund for MSMEs and Manufacturing Enterprises was established to support them towards driving economic growth and job creation.

Olusi was represented by Mabel Ndagi, Executive Director, Public Sector and Interventions of BoI.

He said that MSMEs are the driving force behind the nom-oil economy, contributing significantly to innovation, economic growth and job creation in the agriculture, manufacturing and services sectors.

The director said: “Despite the immense contribution to economic growth, MSMEs struggle to access the necessary funding to reach their full potential.

“In recognition of this, the Federal Government introduced the N200 billion intervention fund for MSMEs and Manufacturing Enterprises and appointed Bank of Industry as the executing agency to implement this initiative.”

He reiterated that the bank remains committed to playing its part in promoting and supporting MSMEs growth across the country.

Also, the Managing Director of Access Bank Plc, Mr Roosevelt Ogbonna, said the bank was committed to supporting MSMEs.

Ogbonna said: “In 2008, we focused on MSMEs with particular attention on women and youths. Ninety-four per cent of all businesses are MSMEs; 66 per cent of that, are owned by women and youths.

“That is the reason for our focus; we want to be known as Nigeria’s MSMEs bank.”

In Ogun, Governor Dapo Abiodun urged MSMEs in the state to take advantage of the N200 billion Presidential Intervention Fund to boost their businesses.

Industry, Trade and Investment commissioner Adebola Sofela gave the advice at a town hall and sensitisation programme for MSMEs and manufacturing enterprises on the fund in Abeokuta, the state capital.

The fund comprises N50 billion Nano grant, N75 billion loan scheme for big businesses and N75 billion loan scheme for MSMEs.

Sofela said the fund was designed to help enterprises to boost businesses and strengthen the operational capacity of entrepreneurs to contribute effectively to the local and national economic development.

“Many entrepreneurs in the state have benefitted from the Nano grant and other loan schemes of the fund at favourable terms for businesses, which are yielding results.

“The scheme is ongoing, and we are here today so that more entrepreneurs can be sensitised and their questions answered. We believe that more entrepreneurs will be able to benefit from this programme,” he said.

The commissioner, who was represented by the Special Adviser to the Governor on Trade, Mrs. Oluyemisi Somorin-Dawodu, noted that the intervention aligned with the economic transformation of Governor Dapo Abiodun’s administration.

He added that different programmes had been facilitated to engender business growth, skill development, access to finance, and many more, with provision of infrastructure and implementation of business-friendly policies.

The State Manager of the Bank of Industry (BoI), Mr. Michael Agidani, announced that the N75 bilion loan scheme for MSMEs was available for existing small businesses and start-ups that had registered with the Corporate Affairs Commission (CAC).

The banker explained that each business could borrow up to N1 million with nine per cent interest rate within fourth and sixth month, and repayable within three years, while enjoying a moratorium of three months.

A laundry business owner, Mr. Daniel Olukoga, and a member of the Association of Skilled and Vocational Artisans of Nigeria (ASVAN), Mr. Roshid Sodamola, said the programme had proven to be beneficial to different entrepreneurs across the state.

Also, the Federal Government has given conditions for prospective beneficiaries of the Presidential Grants and Loan Scheme for the Micro, Small and Medium Enterprises (MSMEs) to meet before they can access the loan.

The Akwa Ibom State Manager of the Bank of Industry (BoI), Tolulope Toluwase, listed the requirements at the formal launch of the scheme in Uyo, the state capital.

Toluwase said the project targeted 75,000 MSMEs, 75,000 direct jobs and 150,000 indirect jobs.

The state manager explained that each applicant must present a guarantor not below Grade Level 10 at the Federal Government civil service, BVN/NIN, four passport photographs, a valid means of identification of the applicant and their guarantor.

He added that any successful applicant who meets all the requirements would get N1 million loan to boast their business.

Toluwase said the repayment plan would span three years and be made on a monthly basis with an interest rate of a single digit.

He said: “We believe that N1 million per beneficiary when injected in a small and medium scale operation shall make a significant impact. Since it’s a loan, there must be some documentations. Anyone who wants to access must first of all be in business, must be a sole proprietorship and must be registered with Cooperate Affairs Commission (CAC). The interest rate is actually a single digit.”