Edo, BoI unveil N2bn MSME fund for over 50,000 businesses
The Edo State Governor, Godwin Obaseki and the Bank of Industry (BoI), have unveiled a Micro Small and Medium Enterprise (MSME) development fund worth N2bn to support entrepreneurs in the state.
The fund was launched during a citizens’ engagement session organised by the Edo State Skills Development Agency, also known as EdoJobs, held at the Government House, in Benin City, with the theme, ‘Empowering the youths to create sustainable livelihood’.
According to Obaseki, “the Bank of Industry (BoI), a reliable partner, is here today to launch the MSME fund. The initial amount is N2 billion; we are making available N2 billion for MSMEs in Edo State.
“In addition, we have a N165 million fund, as part of the first tranche from the Edo State Government. It will be made available to small businesses, which are currently domiciled in our production hub. The money is to support and encourage them to grow their businesses. The Edo State Government provided N1 billion, while BOI provided the other N1 billion, making it N2 billion, with an attractive interest rate.”
“BOI has the capacity and resources to support this kind of programme. We are also partnering with Konga, utilizing the opportunity to empower our youths in the state,” he noted.
“From this N2 billion fund, we estimate that we can impact as many as 50,000 businesses in Edo State. We have other facilities with other institutions like the Central Bank of Nigeria (CBN). This is a start-up fund, as we expect it to continue to grow: If you start with N50,000, now and when you do well tomorrow in your business, you will need N200,000. Borrowing is part of business, provided you continue to grow,” the governor stated.
On his part, Managing Director/Chief Executive Officer, BOI, Olukayode Pitan, noted that “in a quest to grow and develop MSME businesses in the country, BOI has resolved to continue to collaborate with existing enterprises, as well as reputable local and international partners.
“The MSME fund is aimed at providing business loans to enterprises located within the state, while the second fund is the N165m Edo Production Hub Fund, financed by the Edo State Government. The Edo Production Hub Fund is managed by the BOI and is to support businesses located within the state-owned production hub.”
The team also commissioned the new Bank of Industry Building in Benin City, the Edo State capital.