Senator Adetokunbo Abiru (Lagos East) has facilitated N300 million constituency intervention revolving loan interest rate of six per cent for 1000 Micro, Small and Medium Enterprises (MSMEs) in the district.
Abiru, the Chairman of, Senate Committee on Industries, made this known at the formal unveiling of the loan to 1000 beneficiaries in Lagos on Thursday.
The News Agency of Nigeria (NAN) reports that the Lagos East senatorial zone consists of five Local Government Areas namely, Epe, Ikorodu, Somolu, Kosofe and Ibeju Lekki.
Abiru noted that the loan facility was in furtherance of his commitment to the improvement of the economic lives and empowerment of the people.
The lawmaker said economic empowerment would go a long way in reducing unemployment and eradicating poverty.
He said: “The MSMEs play important roles 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, the MSMEs account for about 50 percent of our Gross Domestic Product and over 80 percent of employment and have footprints across all sectors of our economy.
“Therefore, they offer good channels for the realisation of 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 their numerous small businesses in the Lagos East district.
He urged the beneficiaries to make use of the loan to empower themselves and repay it at the stipulated period of one year, adding that the fund was not a 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, ATM card.
The Governor of Lagos State, Mr Babajide Sanwo-Olu commended Abiru for facilitating the constituency intervention loan at a modest rate of six per cent.
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 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 may be experiencing, especially in the areas of access to finance and capacity building.”
The Director General of BoI, Mr Kayode Pitan, urged the beneficiaries to use the fund to trade and endeavour to pay back in good time so the cycle could remain unbroken.
Pitan said the BoI remained an advocate for poverty reduction and job creation for the youths.
NAN reports that present at the unveiling were party chieftains, women leaders, market leaders, traditional leaders, youth leaders and House of Assembly members in the senatorial district. (NAN)