EKO NEWS

Sanwo-Olu Hails Tokunbo Abiru for Boosting Lagos East MSMEs With N300 Million Revolving Loan

Published

2 years ago

Sep 17, 2022.

By Babatunde Kaka

Eko Hot Blog reports that Governor Babajide Sanwo-Olu has applauded the extraordinary initiative of boosting the blossoming Lagos East economy as the Chairman, Senate Committee on Industries and the Senator representing Lagos East Senatorial District, Distinguished Senator Mukhail Adetokunbo Abiru, FCA, injected the loan sum of N300 Million into the Medium and Small Enterprises (MSMEs) sector in the Lagos East Senatorial District.

The Governor who was ably represented by his deputy Chief of Staff, Mr Gboyega Soyonwo disclosed this in his address, stressing that Senator Abiru has continued to keep faith with the people through qualitative representation., stressing that such enviable representation was pertinent to amassing the dividends of democracy through the welfare development of the people.

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“I commend my dear brother, distinguished Senator Mukhail Adetokunbo Abiru for keeping faith with his constituents, the good people of Lagos East Senatorial District and the entire people of Lagos State through effective representation at the red chamber and the various empowerment programs he has initiated including the one being unveiled here today. This is an example of the dividends of democracy our people desire and we will not relent in ensuring that the welfare and wellbeing of our people remain our one and only priority,” he said.

Some youth influencers at the event

Eko Hot Blog reports that the constituency intervention revolving loan worth 300 million Naira at 6% per annum was strategically initiated for Micro, Small and Medium Enterprises (MSME) and entrepreneurs in Lagos East. The fund size is N300 million at a highly concessional 6 % (All-in) single-digit interest rate per annum loan tenor between 3 to 18 months while the loan limit per beneficiary is pegged N100,000 – N1,000,000.

Speaking on the essence of actualizing the initiative of supporting MSMEs in the district, Abiru, a retired bank Chief Executive and former Commissioner for Finance in Lagos State said MSMEs played a pivotal role in socio-economic development adding that they contribute immensely to the national Gross Domestic Product (GDP). This, he said, was the more reason why the loan scheme had to be launched to stem the tide of obnoxious loan terms with complex requirements offered by hostile financial institutions.

“Micro, Small and Medium Enterprises (MSMEs) play an important role in the economic development process. This reality is acknowledged globally. They play crucial roles in job creation, income redistribution, mobilization of small savings, technology adaptation, economic inclusion and many more. In Nigeria, the MSMEs account for about 50% of our Gross Domestic Product and over 80% of employment and have footprints across all sectors of our economy. Therefore, they offer good channels for the realization of development objectives of job creation, economic inclusion and poverty reduction.”

“Access to finance has been identified by various studies as one of the biggest challenges faced by small businesses in the Nigerian economy. Many MSMEs, out of desperation, take loans from informal financial markets and finance companies at outrageous interest rates, sometimes as high as between 50% – 120% per annum. MSMEs are also subjected to a lot of complex requirements such as loan collaterals, strenuous documentation, and bureaucratic processes which impede access to credit by these small businesses.”

“This Constituency Intervention Revolving Loan for MSMEs will go a long way in bringing succour to our numerous small businesses in the Lagos East Senatorial District. To ensure the sustainability of the scheme, we have developed a risk management framework to make the scheme an enduring and revolving facility that will impact many more people beyond the first round of beneficiaries,” he said.

Eko Hot Blog recalls that in June 2022, the Senator had doled out N50,000 each to about 1,250 market women totalling N62.5million and also provided hand planters and working capital of N20,000 to about 200 rural farmers.

It was gathered that the colourful event which was held at Funplex Event Center, CMD Road, Ikosi-Ketu had in attendance numerous party leaders, traditional rulers, religious leaders, youth organizations and other stakeholders.