Delta State government said it will pay N90 million to offset the nine per cent interest rate of the Central Bank of Nigeria (CBN) N2 billion micro, small and medium enterprises development funds (MSMEDF) to the state . Governor Emmanuel Uduaghan who stated this during the official disbursement of the first tranche of the funds in Asaba, maintained that his administration would continue to develop human creative capacities for economic values.
Uduaghan said, beside the cluster groups, Internally Displaced Persons (IDPs) from the Northern parts of the country and Physically Challenged Persons (PCP) must benefit from the loans. He promised that his administration would shoulder any cost arising from the disbursement of the funds to the benefitting entrepreneurs. “Let me assure the CBN that the money will get to those whom it is intended for, and whatever logistics that would be involved, the state government will take responsibility and also pay the nine per cent interest rate so that it will get to the beneficiaries at zero per cent,†the Governor assured.
He explained that the first tranche of N500 million would be disbursed to the entrepreneurs while awaiting the balance, even as he hinted that the state has since positioned itself to benefit immensely from the scheme when it was first launched at Abuja.The CBN Governor, Mr. Godwin Emefiele, accompanied by his top officials of the central bank at the symbolic presentation of the cheques explained that the loans would attract a single digit interest rate. He said the exercise was part of the federal government‘s initiative of the N220 billion funds to improve MSMEs’ access to finance to boost economic growth in the country.
He explained that the major challenge facing about 17.3 million MSMEs in the country was the cost and lack of access to affordable financing which has a gap of about N9.6 trillion.
“Let me emphasize that we have structured this fund to ensure that they can be accessed by those who need them the most , rather that those who are simply privileged to occupy important positions in governmentâ€, Emefiele said.
He further pointed out that “state governments are eligible to access up to N2 million each for on-lending to successful beneficiaries through participating institutions in their states,†adding that “micro enterprise can access a maximum of N500,000 for a one-year tenor, while SMEs can access a maximum of N5million for up to five years
