In an avowed bid to tackle the economic challenges occasioned by the removal of fuel subsidy, Governor ‘Seyi Makinde, in August 2023, set up a 15-man committee for the Sustainable Action for Economic Recovery (SAfER).
Led by the Chief of Staff to the Governor, Segun Ogunwuyi, the committee aims to mitigate the impact of the subsidy removal on the state’s residents. Government officials in the committee include the Commissioner for Budget and Economic Planning, Prof. Musibau Babatunde.
Matching action with words, in October 2023, the state government presented N500 million SAfER cheques to participating microfinance banks across the seven zones in the state.
Presenting the cheques, the Chief of Staff, who is also the chairman of SAfER committee, said the N500 million would serve as loan support to small and micro enterprises under the Sustainable Action for Economic Recovery (SAfER).
Ogunwuyi said the beneficiaries were selected based on their business capacities.
To appraise the effectiveness of the scheme, on February 5, 2024, the government began the monitoring of beneficiaries of the N500 million SME scheme.
The state’s Commissioner for Budget and Economic Planning, who also doubles as the chairman of the SAfER Small and Medium Enterprises (SME) sub-committee, Professor Musibau Babatunde, led members of the sub-committee on the monitoring and evaluation visit to participating microfinance banks and some beneficiaries of the loan in Ibadan, Oyo and Ogbomoso, Oke-Ogun One and Two, climaxing at Ibarapa zone on February 8, 2024.
In all the zones, like Oliver Twist, participating banks and beneficiaries requested for an expansion and extension of the programme to capture more residents.
In Ibadan zone, the Managing Director, NUT Oke-Bola Microfinance Bank, Ibadan, Dr Paul Adu, who is also the coordinator for the seven participating banks across the state, lauded the good initiative of the government.
Similarly, the Chief Operating Officer, Full Range Microfinance Bank Limited, Adamasigba, Ibadan, said the loan support is viable towards alleviating poverty, creating jobs and boosting businesses, adding that the loan scheme is not propaganda as insinuated by some people.
The duo appealed to the government to increase the loans disbursed to the participating banks, as some of the eligible applicants have yet to be attended to.
Also speaking, the Managing Directors of Isale Oyo Microfinance Bank, Saabo Market, Oyo and Caretaker Microfinance Bank, Ogbomoso, Mr Salawudeen Oyedele and Mr Olayiwola Oladoke, said the beneficiaries of the SAfER loan cut across farmers, artisans, small scale manufacturers, booksellers, market men and women, among others.
They stressed that as participating banks, the programme has impacted positively on their banks and on the beneficiaries.
They all confirmed that most of the beneficiaries had started the repayment of the loan as duly stated.
In the Oke-Ogun zone, the Managing Director of Ebedi Microfinance Bank Limited, Iseyin, Mr. Afolabi Abiola, said: “The beneficiaries want it to continue. They are demanding more and those yet to benefit are eager to be part of it.”
In Shaki (Oke-Ogun Zone), it was the same story, as the Managing Director of Kadupe Microfinance Bank Limited, Shaki, Olawale Abegunde, said residents of the town are yearning for more.
He said: ‘’There four hundred beneficiaries have got their loan. Out of these, 352 individuals and 48 registered businesses got the facility. A sum of N70 million was given to us. Four million naira has been repaid and others are still paying.
‘’We have a lot of demands. People are grateful for the facility but demanding more. The benefits will spread more which will enhance the welfare of the individuals and boost the economy of the state.
‘’We plead to the government to release more funds, it is going to help the economy of the state and the individuals.”
At Ibarapa Zone, the Managing Director, Excel Micro- Finance Bank Limited, Sanngo, Eruwa, David Oladeji, said: “We have disbursed the loan. We got N70 million while we have disbursed N65 million. Many applicants are pending. We are expecting other beneficiaries. 834 applicants are currently benefiting from the scheme. We are expecting the Oyo State government to add more to the scheme.”
In the same vein, beneficiaries are yearning and expecting more.
In their separate reactions from Ibadan zones, Mrs Foluke Akinpelu, an event planner who got a loan of N1,000,000; Mrs Adedayo Adenuga, a caterer and Mr Adetunji Adeoye a barber/entrepreneur who got loan sums of N500,000 and N250,000 respectively, appreciated Governor Makinde for the timely intervention.
They added that their businesses have improved since they accessed the SafER SME loan support.
Also, Alhaja Rukayat Ayesoro from Oyo zone, who accessed N1,000,000 for her business, appealed to the state government to reduce the interest rate in the subsequent programme, while a farmer from Ogbomoso zone, Mr Michael Adewale, who got N750,000, also thanked the government for the opportunity.
For the two zones in Ibadan, NUT Oke-Bola Microfinance Bank Limited disbursed N75,000, 000 to four hundred and nineteen beneficiaries, while Full Range Microfinance Bank Limited disbursed N50,000,000 to 300 beneficiaries.
In Oyo Zone, 327 beneficiaries were given N70,000,000 by Isale Oyo Microfinance Bank, while a total sum of N70,000,000 was also disbursed to 300 beneficiaries through Caretaker Microfinance Bank, Ogbomoso.
In Iseyin, a 36-year-old businesswoman and owner of Abolore Stores at Adabo Market, Iseyin, Mrs. Ganiyat Abolore, said: ‘’ I got one million naira to support my business. It has been very impactful. We still need more of this scheme from Governor Seyi Makinde.”
Another 70-year-old Iyabo Busari who sells yam flour, peppers and other items at the market said he collected N200,000, which she said had made impacts in her business. “We want more,” she said.
Alhaji Suleimon Balelayo who deals in iron rods and other articles at Oba Akinbekun area, Iganran, Shaki, also toed the same line.
In Eruwa, Sekinat Sanusi, an hairdresser, who has repaid her own loan, called on the government to sustain and increase the facility for others to benefit.
Speaking during the exercise, Prof. Babatunde explained that the monitoring visit was to enable the committee to assess the level of operations of the Microfinance banks and their compliance with the operational framework guiding the disbursements of loan to the beneficiaries, since the state government had disbursed the loans in three tranches to the participating banks.
The professor expressed satisfaction on the repayment turnout of the beneficiaries, while he also assured applicants waiting to benefit from the laudable scheme that it would soon get to them.
He stressed that the loan is without collateral and that the beneficiaries have a three-month moratorium before the commencement of repayment.
He said: “The Federal Government removed the subsidy for gasoline products and also unified the exchange rate and that led to the devaluation of the naira. These two policy shocks actually affected the general price level, as inflation shot up; and the exchange rate of the naira to the major currencies in the world depreciated to a very large extent.
“The interest rate was increased to stabilise inflation and as a result of that, an economic crisis ensued and it has affected the people of the state especially business owners.
“Governor ‘Seyi Makinde, in his wisdom, felt that there was the need to make a conscious attempt to actually help and enhance the activities of small and micro enterprises in Oyo State. This was how the SME Pillar under the SAfER programme came about.
“We went through the whole procedure, made it a single digit interest loan so that it is accessible and also the term of accessing was actually made flexible for the beneficiaries across the seven SME-supporting Microfinance banks in the seven geo-political zones of Oyo State.
‘’With a single-digit interest rate, three-month moratorium and focusing on the lower part of enterprises, its flexibility is encouraging. It shows that Governor Makinde is expanding the economy of the state.
“They need more and we need to take this into consideration. We will make our report to Governor Makinde. I’m very optimistic that Phase Two will come because we have seen the success this has brought up.”
Also speaking, the Director-General, Oyo State Investment and Public Private Partnership Agency (OYSIPA), Mr Olatilewa Folami, said Oyo State under Governor Makinde would always come up with poverty alleviation programmes that are impactful to support small and micro enterprises.
