Governor Siminalayi Fubara of Rivers State has launched a N4 billion matching fund loan scheme in the state.
News About Nigeria reports that the scheme, a partnership between the Rivers State Government and the Bank of Industry (BoI), aims to provide soft loans to nano, small, and medium-scale businesses.
The launch took place at the Dr. Obi Wali International Conference Centre in Port Harcourt on Friday.
During the launch, the disbursement of the loan scheme to 3,066 micro, small, and medium-scale enterprises and 100 companies in the state kicked off.
The beneficiaries were selected from all 23 local government areas, including businesses owned by non-indigenes, and will receive loans valued at over N3.6 billion.
Governor Fubara, in his remarks, said that the scheme is a fulfilment of his campaign promise to support entrepreneurial development and business growth through access to credit.
He noted that many small-scale businesses struggle to access credit due to high-interest rates, and this scheme aims to address that challenge.
The governor pointed out that the lack of access to credit has continued to aggravate financial exclusion and choke the prospects for individuals to realise their economic aspirations for a better life.
He said, “As a state, we cannot talk about economic growth without stimulating business activities to create wealth and jobs through policies and programmes that will engender greater public access to credit and financial inclusion.
“MSMEs are well-known as critical drivers of inclusive economic growth and development. By empowering our people to cultivate available economic opportunities, access to credit is a powerful tool for achieving financial security.”
Governor Fubara made it clear that the loan is not a charity but a business transaction, and beneficiaries must pay it back to enable others to access the fund.
He instructed the management of the Rivers State Microfinance Agency (RIMA) to monitor the progress of the beneficiaries in their businesses and ensure a 100 percent recovery of the loans to guarantee the sustainability of the programme.
The Managing Director of BoI, Olasupo Olusi, represented by Mr. Usen Effiong, said the bank remains committed to supporting Nigerian enterprises and creating jobs.
He noted that BoI has invested N55.65 billion in Rivers State, accounting for 55% of its total investment in the South-South region.
