The Niger Delta Chamber of Commerce, Industry, Trade, Mines, and Agriculture (NDCCITMA), in collaboration with the Niger Delta Development Commission (NDDC), has unveiled a financial support of N1.5 billion to foster the growth of small businesses within the Niger Delta region.
The scheme tagged ‘Economic Development Initiative’ is implemented in the nine states of the oil-rich Niger Delta region.
Chairman of NDCCITMA, Idaere Gogo-Ogan, said the scheme meant for the Small and Medium Scale Enterprises (SMEDAN) is aimed at creating wealth and ensuring economic development of the region.
He noted that the beneficiaries of the first phase of the project were drawn from the nine states of the region.
Gogo-Ogan said the loan, which has a one-year repayment plan with three months of moratorium, attracts only a nine per cent interest rate, stating that the initiators want small businesses in the region to succeed.
He said: “We are indeed very grateful, first of all to our collaborating and essential strategic partner, that is the Niger Delta Development Commission, ably led by its visionary and transformative Managing Director, Dr Samuel Ogbuku, for setting this programme, which basically is to reach out to the poorest of the poor, small businesses, micro-businesses, because we all believe that through robust and sustainable development does not come from the top, it comes from the bottom.
“When you aggregate all of these small businesses and you empower them from an institutional level, then of course, you begin to see the gains of real economic prosperity.
“We have four categories: the nano businesses, N200,000; micro businesses, N3 million; small businesses, N7 million; and the medium businesses, N20 million to 50 million.
“The interest rate is just nine per cent. If you take it month by month, it is about 0.6 per cent monthly. Today, we are giving out a total of N1.5 billion. In December, the second batch will go, which will be about N2 billion. We profiled the customers. We are working with consultants.”
Gogo-Ogan said consultants were contacted to carry out due diligence on the beneficiaries, adding that financial support for businesses was the missing link in the development of the region.
He said, “These are businesses we are supporting. We know them and we have trained them. We don’t want them to use the money for marriage, thinking of it as a settlement.
“The missing part had been given to them this resource, and I am so happy as Chairman of this board that today, we have done something that the Niger Delta Region so much requires, which is this small support.
“We believe that the transformative effect will be so enormous that it will lead to job creation, poverty eradication, and youth restiveness will be in the past. In two years, all the issues of capital flight, companies leaving our region and militancy will be things of the past.”
Also, the Director, Commercial, Industrial Development of NDDC, Lina Okara, noted that the invitation was part of the Commission’s mandates.
She urged the beneficiaries to be accountable and responsible with the funds, noting that it was the gateway to their economic freedom.
She said: “NDDC was established to facilitate rapid development, improve the economy, and ensure growth in the Niger Delta region.
We have attempted many schemes to ensure that many have access to improve their business at whatever level. It has been a challenge. But, since NDCCITMA was created two years ago, we are seeing that it is the best step. We are making a difference in the lives of our people. Now you see people can access loans.
In a few years to come, we will be an outsourced region in the country.
“The beneficiaries should be responsible and accountable. Whatever funding you are getting is to help your business multiply. Use the fund wisely, because it will help others who also need this support.”
A representative of SMEDAN, Olalekan Rasheed, urged entrepreneurs to ensure proper documentation to enable them to access the funds. She also advised against diverting the funds to other non-economic activities.
