Categories: EKO NEWS

BOI, LSETF, CPPE, SMEDAN, Others Hail Senator Abiru’s N300m MSMEs Loan Scheme

By Babatunde Kaka

Eko Hot Blog reports that Top finance and business organisations across Nigeria were full of praises for Tokunbo Abiru, senator representing Lagos East Senatorial District at the National Assembly, as he unveiled a N300 million revolving loan scheme for his constituents.

Eko Hot Blog reports that the senator unveiled the loan scheme at an event involving finance and business stakeholders on Thursday, September 15, 2022, in Ikosi-Ketu, Lagos.

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The scheme has an interest rate of 6% per annum and will benefit 1,000 entrepreneurs according to the lawmaker.

At the unveiling event, Mr Wale Edun, an international Finance expert and the Chairman, ChapelHillDenham Group, who chaired the occasion, applauded Abiru’s legislative style.

According to the former Lagos State Commissioner for Finance, the Lagos East senator has added sustainable value to the lives of Micro, Small and Medium Enterprises (MSMEs) in his constituency through adequate training by concerned institutions.

Edun described the loan scheme’s interest rate as “almost free” while urging beneficiaries to use the money properly so that other entrepreneurs can benefit.

“If you want to do anything that will be sustainable, do it the way the Senator has done it – bringing major institutions who will train and assist people and empower them to do their business,” he said.

“It is almost free money considering the 6% interest rate per annum. Take this money, use it well so that another person can benefit.”

In her remarks, Mrs Tejumola Abisoye, Executive Secretary, Lagos State Employment Trust Fund (LSETF), disclosed the agency’s readiness to collaborate with Abiru’s office in implementing the programme.

Abisoye argued that the scheme’s 6% interest per annum is the lowest MSMEs can get anywhere.

“No financial institution can give you that. Even at LSETF we do 9%,” she added.

The LSETF boss was represented by Omolara Adewunmi, the organisation’s Director, Programmes.

On his part, the Managing Director, Bank of Industries (BOI), Mr Olukayode Pitan, acknowledged the negative impact of the COVID-19 pandemic on MSMEs.

He, therefore, urged the chief executives of MSMEs to reposition their businesses to adapt to post-pandemic economic realities.

The BOI boss warned that access to finance was not enough to boost profits, adding that businesses must take credible business intelligence, technical know-how, success strategies, resilience, and branding seriously.

“The pandemic taught us many life-changing business lessons. We now know that new business owners’ top priority isn’t only finance but credible business intelligence and knowledge to guide their creation, survival and success strategies,” Pitan said.

“The pandemic required resilient entrepreneurs to adapt their businesses to new economic realities, from making and branding their products to reaching customers.”

Dr Muda Yusuf, Chief Executive Officer, the Centre for the Promotion of Private Enterprise (CPPE), also joined in the praise of Abiru for prioritising the welfare of his constituents.

Yusuf noted that the senator’s initiative resonated with the core mission of the civil society organisation that advocates promotion of private enterprise.

The CPPE chairman stated that such an effort would result in substantial and sustainable socio-economic impacts. He thereafter pledged his organisation’s support for Abiru’s loan initiative.

“This remarkable initiative by distinguished Senator Tokunbo Abiru resonates perfectly with our core mandate as a civil society organisation, which is the promotion of private enterprise,” Yusuf said at the unveiling event.

“We believe that to salvage this economy and ensure social stability, we must promote the growth of private enterprises, especially small businesses. And we must do this in a manner that is impactful and sustainable. In the light of this, it is the belief of the CPPE that this initiative deserves all the necessary support.”

Ekohotblog reports that Mr Olawale Fasanya, Director General of Small and Medium Enterprises Development of Nigeria (SMEDAN), also made remarks at the event.

In a short address, he hailed the senator’s “passion-driven leadership exploits” in the upper legislative chamber.

Fasanya added that he has been a beneficiary of the public-spirited benevolence of the former bank executive in his 19 years working at SMEDAN.

FURTHER READING

Recall that Abiru was the Group Managing Director/Chief Executive Officer of Polaris Bank Limited, Nigeria, before he was elected to the Senate in December 2020.

Less than a year after he was elected, in November 2021, Abiru had announced N100 million loan support for MSMEs.

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Damilare Abass

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Damilare Abass

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