The Bank of Industry (BoI) has presented N362 million cheque to the first batch of beneficiaries of the N2billion-Micro Small and Medium Enterprises (MSMEs) development fund in Benue State. It has also granted N1.5billion direct funding to 28 businesses.
Benue State and the Development Finance Institution (DFI) had last year signed a pact on the N2billion matching fund to boost the entrepreneurial potentials of citizens in the state.
Under the financing model, both parties gave commitment to contribute N1billion each for on lending to mainly businesses that have high employment generating potential and value addition to local raw materials.
This is even as the bank announced that over 28 other businesses had been granted N1.5billion from its own direct funds.
According to the Managing Director, Olukayode Pitan, the 38 loans beneficiaries are those who met the bank’s pre-disbursement condition.
He said: “The matching fund was capable of developing small and medium scale enterprises in the state. Other businesses in the state should take advantage of the unique opportunities offered by the scheme.
“Two-week entrepreneurship training would be organised to build the capacity of the beneficiaries. The partnership with the Benue State government goes beyond providing loans.”
As part of the package, all beneficiaries will undergo two weeks entrepreneurship training to help their capacity to manage these businesses successfully.
“Beneficiaries should avoid diverting this fund to areas not envisaged by the scheme; we are reminding them to take seriously their obligations to repay the loans so that others can benefit.
“The bank had granted loans of over N1.5 billion to businesses across sectors such as food processing, fruit juice processing, piggery, yam/cassava flour, rice processing, fashion designing, and quarries/solid minerals.
“Under the Government Enterprise and Empowerment Programme (GEEP) which is principally created for farmers, traders and artisans, the bank had also disbursed a total of N255million to 5100 beneficiaries across the state.”
Speaking, the Deputy Governor of Benue State, Engr. Benson Abono commended the bank for its efforts at developing small businesses in the state, suggesting that the governor establish industrial parks, at least, one in each senatorial district where amenities will be provided and where other infrastructure will be provided. They will share the facilities.”
Charging the beneficiaries to make the best use of the opportunities, the deputy governor said the first set of recipient would make us proud. It is now time for us to join the business world. It is not wrong to borrow money for business it is what you do with the money that matters.
