When Edo State Governor Monday Okpebholo announced a ₦1 billion interest-free loan scheme in June 2025, the initiative stood out in a national economy weighed down by high inflation, rising interest rates and shrinking access to credit for small businesses.
More than a social intervention, the programme has emerged as a strategic attempt to stimulate grassroots economic activity by channeling affordable capital directly to those who drive Edo’s informal and small-scale economy.
Under the scheme, 5,000 beneficiaries drawn evenly from Edo South, Edo Central, and Edo North senatorial Districts received ₦200,000 each, ensuring geographic balance and statewide impact.
The programme is being implemented through the Edo State Skills Development Agency (EdoJobs), with a clear focus on inclusion and transparency.
Unlike many public credit interventions that tend to favour politically connected beneficiaries, the Okpebholo Administration adopted a uniform disbursement structure.
Every beneficiary received the same amount under identical conditions—interest-free and with flexible repayment—reducing distortions and strengthening trust in the process.
The target groups were traders, market women, farmers (including Fadama and organised farming clusters), artisans, and micro-entrepreneurs—segments that employ a significant portion of Edo’s working population but remain largely excluded from formal banking credit due to lack of collateral, high interest rates, and rigid loan terms.
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For many recipients, the ₦200,000 loan provided working capital that translated directly into business expansion.
Traders restocked and diversified inventory, market women improved turnover, farmers invested in inputs to raise yields, while artisans and small manufacturers acquired tools and raw materials that boosted productivity. Because the loans carry no interest burden, beneficiaries are able to reinvest profits rather than struggle with servicing costs.
Early indications suggest the scheme is helping to stabilise household incomes, expand micro-enterprises, and create modest employment opportunities at the community level.
The initiative also fulfils a key campaign promise by Governor Okpebholo to support underserved businesses and strengthen the informal economy, which remains a critical but often neglected driver of Nigeria’s economic output.
At the national level, the scheme aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda, particularly its emphasis on economic inclusion, grassroots development, and support for small-scale enterprise as a pathway to sustainable growth.
Importantly, the programme is structured as a revolving fund. Beneficiaries are required to repay only the principal over time, ensuring that the ₦1 billion pool can be recycled to support future entrepreneurs.
This design enhances the scheme’s long-term sustainability and fiscal prudence. Confidence in the programme’s impact is reflected in the inclusion of another ₦1 billion allocation in Edo State’s 2026 budget proposal for a second batch of beneficiaries, subject to approval by the state’s leadership. If implemented, the expansion would significantly deepen the scheme’s reach and consolidate its role in Edo’s economic strategy.
What distinguishes the Edo intervention is not merely the size of the fund, but its underlying philosophy—that economic growth begins from the bottom up, in markets, farms, workshops, and neighbourhood businesses where everyday enterprise sustains communities.
As the ripple effects continue to spread through stronger micro-businesses, rising incomes, and more vibrant local commerce, Edo State’s ₦1 billion interest-free loan scheme offers a practical example of how sub national governments can deploy targeted financial tools to drive inclusive growth in challenging economic times.
