MSMEs to Get N10m Collateral-free loans, Says Osinbajo




Acting President, Prof. Yemi Osinbajo, says the Federal Government is working towards providing Micro, Small and Medium Enterprises (MSMEs) a credit facility of N2milion to N10 million without collateral.

Osibanjo made the disclosure at a dinner/ maiden edition of the MSMEs Award 2018 held at the State House Banquet Hall, Abuja.

The awards packaged by the Office of the Vice-President and supported by the Federal Ministry of Trade and Investment, got over 300 nominations across the nation.

Osinbajo had in 2017 launched the MSME Clinic as part of efforts to encourage the contributions of MSMEs to Nigeria’s economic growth.

The acting president said he was delighted to reward and recognise outstanding MSME as they represent remarkable examples of Nigerian entrepreneurship, creativity and innovation.

According to him, efforts are underway to double government’s commitment to ensuring that MSMEs find an enabling environment to thrive.

He said that in addition to the one-stop-shop launched in some states to carry the MSME clinics intervention, the Federal Government would soon launch its shared facilities for MSMEs initiative.

Osinbajo  said the initiative would be in partnership with the Bank of Industry (BOI), Federal Inland Revenue Service (FIRS), Nigerian Export-Import Bank (NEXIM) and the Nigerian Export Promotion Council

He said: “We will also partner with the Central Bank of Nigeria (CBN) and commercial banks to launch a credit facility that will make available to MSMEs loans from N2m to N10m with a period of five to seven years with little or no collateral.

“The interest rate will be five percent. All that you need is to provide the committee with a bankable business proposal and guarantor,’’ he said.

Osinbajo said that the Federal Government was also exploring an initiative by CAC to allow a special window of 90 days for MSME which had not registered their businesses to do so at a highly subisidised price.

He said he was aware of complaints from some states and warned that he would not tolerate the shirking of responsibilities from agencies on the one-stop- shop for MSME.

Earlier in her remark, Hajiya Aisha Abubakar, the Minister of State for Industry, Trade and Investment, commended Osinbajo over the MSME clinics initiative and awards.

She said that efforts were being made to give the MSMEs expert advice on legal, accounting among other areas to strengthen their businesses.

The event attracted the Governor of Plateau, Simon Lalong, Gov. Ben Ayade of Cross River State and Deputy Governor of Abia, Mr Ude Oko Chukwu.(NAN)