The Edo State Government has disbursed a total of N703,678,950 to 1,681 Micro Small and Medium Enterprises (MSMEs) in the state under the Edo MSME Fund scheme.
Project Manager, Edo State MSME Fund, Joseph Ojoboh, who disclosed this in a chat with journalists, noted that the scheme was conceived by Governor Godwin Obaseki to ease challenges of access to finance faced by small and medium businesses in the state.
According to him, “As at December 2022, 1,681 MSME beneficiaries have received disbursements (Microcredit and SME loans) so far from the MSME Funds to the tune of N703,678,950.
“We undertook a number of engagements to ensure that we have applicants from different segments of the business environment. The engagements were to sensitize the MSMEs in the State on the availability of funding opportunities. We also embarked on a post-sanction mini workshop for the first 32 MSME Beneficiaries whose businesses were approved for funding, among other such engagements.”
He noted that the fund was divided into different categories comprising small businesses, those that are registered with the Corporate Affairs Commission and those that are Limited Liability Companies.
According to him, “One of the categories is for micro businesses who need financial loans of N100,000 to N500,000 to grow their businesses. The interest rate for this loan is 9% per annum with a two-month moratorium period and a one-year tenor period. The sum of N500 million was set aside for these businesses. This scheme is currently regulated by Trustfund Microfinance Bank Limited which screens and credit-appraises the qualified candidates before disbursement approval is given.
“The second loan category is for N1m to 10m which is for businesses that are registered as Enterprises with the Corporate Affairs Commission (C.A.C.) either as a sole proprietorship business or partnership business. It has certain requirements and documents for its application (as contained in the BOI Checklist).
“The third one is for N10m to N20m which is set aside for SMEs that are registered as Limited Liability Companies, and certain criteria are needed to be fulfilled before this loan can be accessed.”