Delta Declares Free Interest for Beneficiaries of CBN N2bn MSME Funds

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Emefiele (left) presenting a Cheque of Two Billion Naira CBN Micro, Small and Medium Enterprises Development ( MSMED) fund to Governor Emmanuel Uduaghan

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 government”, 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

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