The Edo state government in collaboration with the Bank of Industry has launched a N2 billion micro, small and medium enterprises (MSMEs) development fund to support entrepreneurs in the state.
The fund was launched during a citizens’ engagement session organized by the Edo state Skills Development Agency, also known as EdoJobs, in Benin City, with the theme, ‘Empowering the Youths to Create Sustainable Livelihood.’
Speaking at the unveiling ceremony, Governor Godwin Obaseki said the fund, which was seeded with N2billion, was an equal contribution of N1bn from the state government and the BOI.
Obaseki, while estimating that the fund would impact over 50,000 businesses in the state, assured that his administration would continue to improve the livelihoods of the people and create opportunities for the youths to thrive.
“BOI which is 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 N165million 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.”
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The governor noted that BOI has the capacity and resources to support this kind of initiative, noting that the state is also partnering with Konga to empower youths in the state.
“We have other facilities with other institutions like the Central Bank of Nigeria. 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,” Obaseki said.
Also speaking, Olukayode Pitan, managing director/chief executive officer, BOI, on his part, said “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,” Pitan added.
