In a strategic move to bolster economic recovery and support small-scale entrepreneurs, the Oyo State government has formalized a memorandum of understanding (MOU) with seven microfinance banks. This collaborative effort aims to facilitate the disbursement of N500 million in loans targeted towards small and micro-enterprises (SMEs).
This initiative is a vital component of the Sustainable Action for Economic Recovery (SAfER) program, implemented by the government to mitigate the impact of the recent petrol subsidy removal. Dotun Oyelade, the commissioner for information and orientation, emphasized that critical sectors such as transportation, healthcare insurance, food security, and agriculture are already reaping the benefits of palliative measures instituted by the state government.
Specifically addressing the transportation sector, Oyelade disclosed that 46 buses have been deployed, with 31 of them serving intra-city routes within Ibadan. Additionally, the remaining buses are allocated to connect key towns across the state, offering reduced fares to commuters. This move not only enhances accessibility but also contributes to easing the financial burden on citizens.
The collaboration between the Oyo State government and microfinance institutions underscores a concerted effort to fortify the economic landscape by empowering SMEs, which serve as the backbone of the local economy. This injection of capital is poised to stimulate growth, foster innovation, and generate employment opportunities within the state