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April 14, 2024
You are currently viewing Edo, LAPO MfB sign MoU to disburse N300m loan to MSME
Mr Osarodion Ogie, Secretary to Edo State government (m), in a handshake with Gloria Bako, the Executive Director, Corporate Services, LAPO Mfb, shortly after signing the MoU in Benin City

Edo, LAPO MfB sign MoU to disburse N300m loan to MSME

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By Nefishetu Yakubu

Edo Government on Tuesday signed a Memorandum of Understanding (MoU) with LAPO Microfinance Bank for the disbursement of N300 million to Micro, Small and Medium Enterprises (MSME) across the State.

The News Agency of Nigeria (NAN) reports that the Secretary to the State Government (SSG), Osarodion Ogie, signed the MoU on behalf of the state government while Gloria Bako, Executive Director, Corporate Services signed for LAPO Mfb.

The loan, according to the SSG, will be implemented by Edo State Skills Development Agency (Edojobs).

Ogie, in a remark, said that micro finance schemes, all over the world, were the engine room of any economy.

Commending the board of Edo MSME Funds, the management of Edojobs and LAPO Microfinance Bank, Ogie appealed to all beneficiaries to make use of the loan.

He added that it was not a grant but a revolving loan that must be paid back.

Earlier, Peter Obaseki, Chairman of the Advisory Board MSME Fund, commended the government for its sustained support for small businesses in the State.

He emphasised that the mandate of the board was for economic empowerment of small businesses.

Obaseki explained that the loan was part of the social transfer scheme to empower small businesses in each political ward across the 18 Local Government Areas of the state.

He said the loan which had concessionary interest of 9 per cent, was devoid of gender bias.

He also explained that 60 per cent of the funds were allocated to females, 40 per cent to males, while a provision of 10 per cent had been set aside for People Living with Disabilities.

Obaseki stated that the loans would be distributed in the ratio of 50 per cent to Edo South, 27.5 per cent to Edo North and 22.5 per cent to Edo Central senatorial districts respectively.

He disclosed that the MoU with LAPO Mfb made it the third financial partners the state government was partnering with to disburse to MSME in the state.

He further added that LAPO Mfb was brought in to broaden the reach of the disbursement of the fund as well as monitoring, evaluation of beneficiaries and collection of loan repayment.

According to him, the state government has previously disbursed loan to 1,631 persons through the Bank of Industry and TrustFund Microfinance Bank.

On her part, Gloria Bako, the Executive Director, Corporate Services, LAPO Mfb, commended the state government’s commitment to youth development and reassured the bank’s sustained partnership with the government.

“We are humbled by this great task the Edo State Government has given to us, and it is an indication that the government is really concerned about the people that they govern.

“It also showed that the government is concerned not only about empowering business owners but doing a lot for the development of youths in terms of skill acquisitions.

“We want to thank the State Government for the confidence reposed in our organisation for the disbursement of loans to MSME,” she said.

She, however, appealed to would-be beneficiaries to make good use of the loan for the betterment of their businesses. (NAN)(www.nannews.ng)

Edited by Abiemwense Moru

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