To support MSMEs, Abiru launches N300m revolving loan — Business — The Guardian Nigeria News – Nigeria and World News

Access to finance has been identified by various studies as one of the biggest challenges facing small businesses in the Nigerian economy. Many Micro, Small and Medium Enterprises (MSMEs), in desperation, take out loans from informal financial markets and finance companies at exorbitant interest rates, sometimes as high as between 50% and 120% per month. year.

Worse still, to access these loans, MSMEs are subjected to many complex requirements such as loan guarantees, arduous documentation and bureaucratic processes, which hinder access to credit by small businesses. As a result, many people who have ideas and are willing to create jobs and help the nation’s economic development process are discouraged.

It is against this backdrop that the recent launch of the Constituency Response Revolving Loan for MSMEs by the Senator representing Lagos East Senatorial District, Senator Mukhail Adetokunbo Abiru (FCA), has been welcomed by stakeholders and beneficiaries as a major initiative aimed at economic inclusion and poverty. reduction among unhappy and helpless Nigerians.

Abiru, who is the Chairman of the Senate Committee on Industries, recently launched a N300 million Constituency Intervention Revolving Loan at a single digit interest rate of 6% per annum for micro, small and medium enterprises. businesses (MSMEs) and entrepreneurs in the Senate district.

A retired bank chief executive and former Lagos State finance commissioner, he told an elated audience at the launch that he supported MSMEs in East Lagos as they play a pivotal role in economic development and contribute enormously to the national gross domestic product (GDP). ).

He said, “Micro, Small and Medium Enterprises (MSMEs) play an important role in the process of economic development. This reality is recognized worldwide. They play a crucial role in job creation, income redistribution, mobilization of small savings, technological adaptation, economic inclusion and many others. In Nigeria, MSMEs account for around 50% of our GDP and over 80% of employment and have footprints in all sectors of our economy. Therefore, they provide good channels for achieving the development goals of job creation, economic inclusion and poverty reduction.

Abiru said the revolving loan will go a long way in bringing relief to many small businesses in the Senate District. He revealed that to ensure the sustainability of the program, a risk management framework has been developed to ensure that the program has an impact on many more people beyond the first round of beneficiaries. The duration of the loan varies between 3 and 18 months with a limit per beneficiary set between N100,000 and N1,000,000.

Some of the recipients of the highly concessional loan were delighted and expressed their gratitude to Abiru for “providing much-needed support to their respective businesses.”

The size of the fund is N300 million at a highly concessional single-digit interest rate of 6% (all-inclusive) per annum. The term of the loan is between 3 and 18 months and the limit per beneficiary is set at N100,000 – N1,000,000.

Abiru was praised by dignitaries present at the launch, including Lagos State Governor Babajide Sanwo-Olu, senior executives from financial agencies in Nigeria and party leaders, for delivering on the pledge that he had made to the electorate.

Governor Sanwo-Olu, who was represented by his deputy chief of staff, Gboyega Soyannwo, said Senator Abiru continued to trust the people.

“I commend Senator Abiru for keeping the faith in his constituents, the brave people of the Lagos East Senatorial District and the entire people of Lagos State through effective representation and the various empowerment programs that he he launched, including the one being unveiled here today. This is an example of the dividends of democracy that our people desire and we will not slack off to ensure that the welfare and well-being of our people remain our one and only priority.

The chairman of the occasion, Olawale Edun, an international expert in finance, who is also chairman of the ChapelHillDenham Group, acknowledged that Senator Abiru had brought great value to governance as an accomplished professional.

The former Lagos State Finance Commissioner said: “If you want to do something that will be sustainable, do it like Abiru did – bringing in great institutions that will train and help people and give them means to do their business. It’s almost free money considering the interest rate of 6% per annum. Take that money and put it to good use so that another person can benefit from it.

Bank of Industry Managing Director Olukayode Pitan in his remarks tasked MSMEs with repositioning their businesses for post-pandemic realities.

He said: “The pandemic has taught us many life-changing business lessons. We now know that the top priority for new business owners is not just financing, but also credible business intelligence and knowledge to guide their strategies for creation, survival and success. The pandemic has forced resilient entrepreneurs to adapt their businesses to new economic realities, from manufacturing and branding their products to reaching customers.

The Director General of Small and Medium Enterprises Development of Nigeria (SMEDAN), Olawale Fasanya, said he was also a beneficiary of Senator Abiru’s good deed.

“I’m not sure the people of Lagos East know what kind of senator they have. In 19 years of work at SMEDAN, I have not seen this kind of Senator. He is very passionate about the welfare of his constituents.

The executive secretary of the Lagos State Employment Trust Fund (LSETF), Tejumola Abisoye, who was represented by Omolara Adewunmi, director of programs for the LSETF, said the agency was delighted to partner with the office of the senator to implement this laudable initiative. She said 6% interest per annum, which was subsidized by the senator, is the lowest rate MSMEs can get. “No financial institution can give you that. Even at LSETF, we are doing 9%,” Adewunmi noted.

For his part, the Director General of the Center for Promoting Private Enterprise (CPPE), Dr. Muda Yusuf, praised Abiru for promoting the economic welfare of his constituents.

He said, “This remarkable initiative by Senator Abiru resonates perfectly with our core mandate as a civil society organization, which is the promotion of private enterprise. We believe that to save this economy and ensure social stability, we must foster the growth of private enterprises, especially small businesses. And we need to do it in a way that is impactful and sustainable. In light of this, the CPPE is convinced that this initiative deserves all the necessary support.

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