The Oyo State Government has allocated cheques worth N500 million to microfinance banks across the state’s seven geopolitical zones, earmarked as loans for Small and Micro Enterprises (SMEs) under the Sustainable Action for Economic Recovery (SAfER) project.
During the symbolic presentation of the cheques at the Office of the Secretary to the State Government, Ibadan, Chief of Staff to the Governor, Segun Ogunwuyi, emphasized that these funds would help alleviate challenges brought about by the removal of fuel subsidy. He assured that the state government is committed to supporting SMEs and clarified that beneficiaries were selected based on their business capacities.
Under this scheme, micro-businesses can access loans ranging from N50,000 to N250,000, while small businesses have the opportunity to obtain loans from N250,000 to N1 million. Ogunwuyi stressed that the selection of beneficiaries by the participating microfinance banks was free from political influence.
Chairman of SAfER SME sub-committee, Professor Musibau Babatunde, highlighted that this loan support not only empowers SMEs, which form the backbone of the state’s economic activities but also contributes to achieving sustainable development goals aimed at mitigating economic hardships.
Babatunde urged beneficiaries to fulfill their repayment obligations promptly, ensuring that others can also benefit from this commendable scheme. He further clarified that the loan doesn’t require collateral, and beneficiaries have a three-month moratorium period before repayment begins.
Olatilewa Folami, Director-General of Oyo State Investment of Public Private Partnership Agency (OYSIPA), advised beneficiaries to invest the loan in profitable ventures, providing opportunities for others to benefit.
Representing the beneficiaries, Mr. Sunday Fadipe pledged to utilize the loan judiciously, aligning it with its intended purpose and contributing to the state’s development.
The participating microfinance banks include: NUT, Oke-ado, Ibadan; Full range Microfinance Bank, Iwo-road, Ibadan; Caretaker Microfinance Bank, Ogbomoso; Isale Oyo Microfinance Bank, Oyo Town; Excel Microfinance Bank, Eruwa; Ebedi Microfinance Bank, Iseyin; and Kadupe Microfinance Bank, Saki.
