Only microfinance banks that had recovered loans they disbursed to micro small and medium enterprises (MSMEs) in Delta State, would be qualified to be used by the Delta State Micro Small and Medium Enterprises Development Agency (DEMSMA) in subsequent disbursement of funds to the businesses in the state.
The DEMSMA has, therefore, asked the micro-finance banks operating in the state to see themselves as strategic partners with the agency by adopting due diligent process before disbursing funds.
This was as the agency expressed displeasure with certain banks that were yet to recover funds given to them in the past.
The DEMSMA’s Executive Secretary, Orezi Esievo, made the agency’s position known in her office in Asaba when she played host to the managing directors of microfinance banks in the state, led by Couple Igbojie.
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Esievo who expressed displeasure with certain banks that were yet to recover funds given to them for disbursement to the SMEs insisted that they would only be qualified to partner with the state again only when they recover the loans they gave out.
The banks, she said, must reposition their activities towards improved performance as they provide financial services to the economically active operation of the base of the income pyramid.
Speaking on behalf of the banks, Couple Igbojie, chairman of the Delta State’s chapter of the National Association of Micro Finance Banks, (NAMB), who is also the Managing Director of Okpe Micro Finance Bank, thanked the DEMSMA boss on the meeting for the way forward while pledging that they would do their best to recover whatever money that was given to them so that they could still be amongst banks that the agency would partner with to reach out to MSMEs in the state.
BusinessDay learnt that over 3,675 MSMEs in the state are expected to be supported this year, through the Delta State World Bank COVID-19 Action Recovery Economic Stimulus Programme called the DELTA CARES programme.
Esievo told journalists recently, that the state governor, Ifeanyi Okowa’s administration was set to empower MSMEs in the state with grants as working capital to ameliorate the adverse effects of the Covid-19 pandemic on small businesses.
She said the vehicle of implementation is the Delta State Enterprise Empowerment Programme, DSEEP. This, according to her, is one of the empowerment strategies of the Delta state government to support small businesses in the state to thrive and boost the state’s economy.
She revealed the three disbursement link indicators for the MSMEs, to include: subsidized loans, business grants and enhancing the capabilities of MSMEs through IT.
She, however, stated that MSMEs would have to meet certain eligibility criteria to access the grant as enumerators would be trained and dispatched to the 29 constituencies in the state for verification of businesses.
MSMEs’ beneficiaries would cut across different areas ranging from Information Communication Technology (ICT), agri-business and people in the creative industries. The government wants to create the enabling environment and give strategic support for small businesses to thrive, she said.
She noted that though the governor of Delta state was reaching out to MSMEs through grants, there will be verification protocol to qualify for same. She listed some of the criteria to include registered business names, company or individual bank account, possession of a bank verification number (BVN), payroll for employees and length of years in business, among others.
Esievo encouraged small businesses to keep proper records and documentation of their transactions to enable them to easily to qualify. Esievo clarified that beneficiary amounts will depend on the kind of business the MSME operator is engaged in.
She said: “Enumerators will enumerate all businesses across the 25 local government areas. If you are selling garri, provisions, they will come there, capture you, your business and your trade and collated data and successful MSMEs will then be onboarded for funds disbursement. Other collaborative MDAs include the Ministry of Youth Development, Job creation office, Office of the girl-child and TVEB.
She however that the biggest was the bureaucracy in government. “If the bureaucracy to clear files from one clearinghouse to another for the governor’s approval takes you six months, that year is gone. At the end of the day, you will be doing a disservice to the governor because you cannot accomplish much. It is a function of all of us.”
“I don’t even think we should be carrying files in 2020. Everything should be automated. That way you will hold people responsible. If I do a memo and send it to you electronically, and you keep it for weeks or months, of course, you will be accountable to the governor.
“So once you send an email, you can’t change the date. If it sits with the next officer or head of parastatal for more than 24 hours, the trail shows at a glance the defaulter. Trends like this will in turn affect your performance and promotion. Its a system of checks and balances.”
Esievo further explained that the state government was committed to transforming the lives of small businesses as she assured MSMEs of a stronger Delta and a better tomorrow.
