The Edo State Government has allocated the sum of N300 million to Micro, Small, and Medium Enterprises (MSMEs) across the 18 local government areas in the state, as explained by the Secretary to the Edo State Government, Osarodion Ogie, during the signing of a Memorandum of Understanding (MoU) with LAPO Microfinance Bank for the disbursement of the funds.
Facilitated under the Edo State MSME Funds and implemented by the Edo State Skills Development Agency (Edojobs), the loan aims to support small businesses in the state. Ogie emphasized that while microfinance schemes are vital for economic growth globally, the funds are not grants but revolving loans that must be repaid.
Peter Obaseki, Chairman of the Advisory Board MSME Fund, commended the government’s support for small businesses, highlighting the board’s mandate for economic empowerment. He emphasized the inclusive nature of the loan, with provisions for gender balance and support for Persons Living with Disabilities (PLWDs).
The loan, with a concessionary interest rate of 9 percent, is distributed across the senatorial districts of the state, with 60 percent allocated to females, 40 percent to males, and 10 percent reserved for PLWDs. The disbursement is split in the ratio of 50 percent to Edo South, 27.5 percent to Edo North, and 22.5 percent to Edo Central.
LAPO Microfinance Bank, the third financial partner collaborating with the state government for loan disbursement to MSMEs, will broaden the reach of the fund’s disbursement and oversee monitoring, evaluation, and loan repayment collection.
Mrs. Gloria Bako, Executive Director, Corporate Services of LAPO Mfb, commended the government’s commitment to youth development and expressed readiness for sustained partnership. She urged beneficiaries to utilize the loan for business enhancement, highlighting the government’s dedication to empowering business owners and fostering skill acquisition among youths.
