By Bilesanmi Abayomi
Sen. Adetokunbo Abiru (Lagos East) has facilitated a N300 million constituency intervention revolving loan interest rate of six per cent for 1,000 micro, small and medium enterprises (MSMEs) in the district.
Abiru, the Chairman of the Senate Committee on Industries, made this known at the formal unveiling of the loan to 1,000 beneficiaries in Lagos on Thursday.
The Lagos East Senatorial Zone Local Government Areas, namely, Epe, Ikorodu, Somolu, Kosofe, and Ibeju Lekki.
Abiru stated that the loan facility was in furtherance of his commitment to improving people’s economic lives and empowering them through the capacity building forum, which had over 1000 MSMEs in the previous year.
The lawmaker said economic empowerment would go a long way in reducing unemployment and eradicating poverty.
He said: “The Micro, Small and Medium Enterprises (MSMEs) play an important role in the economic development process, and this reality is acknowledged globally.”
“They play crucial roles in job creation, income redistribution, mobilisation of small savings, technology adaptation, economic inclusion and many more.
“In Nigeria, MSMEs account for about 50 per cent of our Gross Domestic Product and over 80 per cent of employment and have footprints across all sectors of our economy.
“Therefore, they offer good channels for the realization of the development objectives of job creation, economic inclusion, and poverty reduction.”
Abiru said the constituency intervention revolving loan for MSMEs would go a long way in bringing succour to the numerous small businesses in the Lagos East district.
He urged the beneficiaries to make use of the loan to empower themselves and repay it within the stipulated period of one year, adding that the fund was not free money to them.
The senator said the Small and Medium Enterprise Development Agency of Nigeria (SMEDAN), the Bank of Industry (BoI) and the Lagos State Employment Trust Fund (LSETF) contributed N100 million each to the N300 million loan.
Abiru said applicants must provide a recent tax clearance certificate, LASRRA ID, bank account details, BVN, NIN, evidence of training with a recognised enterprise development centre, and ATM card.
The Governor of Lagos State, Babajide Sanwo-Olu, commended Abiru for facilitating the constituency intervention loan at a modest rate of six percent.
This he said had contributed to ameliorating one of the key challenges militating against MSMEs thriving to their full potential, especially during the period of recovery from the impact of the COVID-19 pandemic on small businesses.
Sanwo-Olu, represented by his Deputy Chief of Staff, Mr. Gboyega Sayannwo, noted that the initiative also recognised the role of MSMEs play in driving economic growth and creating employment opportunities in all sectors of the economy.
He said: “At the state level, we recognise the critical role and contribution of MSMEs and the need to give them every support.
“This is to overcome whatever challenges they might be experiencing, especially in the areas of access to finance and capacity building.”
The Director General of BoI, Mr. Kayode Pitan, said the beneficiaries should use the fund to trade and endeavour to pay back in good time so the cycle could remain unbroken.
Pitan said the BoI would remain an advocate for poverty reduction and job creation for youth.
The ceremony was attended by the party chieftains, women leaders, market leaders, traditional leaders, youth leaders, and House of Assembly members in the senatorial district.