Delta Govt Approves N1Billion Revolving Fund For MSMEs

The Delta State Government has approved a ₦1 billion revolving fund to be managed by the Bank of Industry (BOI) at a single digit interest rate to support Micro, Small, and Medium Enterprises (MSMEs) in the state.

The State Commissioner for Economic Planning, Mr Sonny Ekedayen, disclosed this on Thursday, during a post EXCO press briefing at Government House, Asaba.

Ekedayen said the initiative aimed to boost entrepreneurship, create jobs, and drive economic growth by providing accessible financing to small business owners at a single digit interest rate.

He said the fund was expected to offer low-interest loans, helping businesses scale up operations and improve productivity.

He said: “The good news will excite the Micro, Small, and Medium Enterprises (MSMEs) and the business community in the state, manufacturing companies, hoteliers, small scale industries among others.

“The Exco, in its wisdom, today approved a managed fund of N1billion with the Bank of Industry and it is another laudable
achievement of the Oborevwori-led administration.

“This is imperative because, apart from infrastructure, businesses operating within the confines of Delta State, no matter how small or big, will be eligible to accessing single digit loan from the Bank of Industry.

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“I am sure that the commercial and business community in the state will be very happy about this because, as we all know, prime lending rate is in the region of about 30 per cent and most businesses will struggle to pay such rates.

“But with this, businesses in the state will be guaranteed of a loan facility of single digit from the Bank of Industry which is going to be revolving.

“I must emphasis that it is a loan and not a grant and only serious minded business men with proven track record will be given that money with subsidised interest rates with flexible tenure.

“Most commercial banks give their loans from 90 to 100 days but with this, the business community in the state can get loans from between one and five years, with some measure of moratorium in between.

“It is something I am very excited about because I know what businesses are suffering, especially by way of working capital.

“It is laudable and commendable for which I expect a major excitement from the business community.”

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The Economic Planning Commissioner also disclosed that Exco approved the State’s Medium Term Development Plan for 2024-2027, describing it as the working document for the Governor’s MORE Agenda.

He added, “Also today, the Delta State Medium Term Development Plan number 3, (2024-2027) was approved and the importance of the medium-term plan cannot be over-emphasised because everything about projects approvals and implementation are all derivatives from this strategic plan.

“It encapsulates the vision and mission of the Governor as enshrined in his MORE Agenda and this document will drive everything about government spending and I can tell you, for free, that we are running all these without borrowing.”