SMEDAN offers interest-free fund to MSMEs
Considering myriad of challenges militating against micro, small and medium-scale enterprises (MSMEs) in Nigeria, Small and Medium Enterprises Development Agency (SMEDAN) has launched special credits for the growth and development of MSMEs across the country.
The funds, according to Dikko Umaru Radda, director-general of SMEDAN, will be made available to operators of MSMEs, especially micro, small and medium -sized industrialists and manufacturers, interest-free across the 109 senatorial districts, with a view to stimulating the economy through One Local Government, One Product Initiative.
Consequently, SMEDAN has signed a memorandum of understanding with five agro-allied and agribusiness co-operatives, namely, Bee Keepers Development Association, Kaduna State; Godwin Gari Processing Kilankwa II, Abuja FCT; Udokanma Ichida Multipurpose Co-operative Society Ltd, specialising in palm produce from Anambra State; Kayauki Kilishi Batagarawa Multipurpose Co-operative Society Ltd, Katsina State and Potato Growers Processors and Marketers Association of Nigeria (POGMAN) from Osun State.
Speaking in Kaduna on One Local Government, One Product Initiative (OLOP) and signing of MoU, Dikko Radda, said the scheme targets establishment of small and medium-sized manufacturing clusters across the 109 Senatorial districts where loans will be provided for them to boost manufacturing activities.
He said that the loans will be distributed MSME investors through microfinance banks in order to eliminate bottlenecks always created by commercial banks on loans provision and repayment terms, adding that there are three months moratorium in addition to interest-free status as well as 30 percent subsidy by SMEDAN to ease production of local products initiative.
While urging would-be beneficiaries of the interest-free loans to work towards prompt repayment of the loans, Radda asked the beneficiaries to be worthy role models by repaying the loans promptly, saying that SMEDAN has worked out repayment scheme that lasts 18 months, which is in addition to 30 percent subsidy on the total loans to be secured by these investors as working capital.
“World over, it is a known fact that MSMEs are the engine that drives economic development, hence every serious nation must take its development as a top priority. SMEDAN positions itself as a one-stop-shop for MSMEs development with the overall objective of alleviating poverty, expanding gainful employment opportunities, wealth creation and sustainable economic growth and development.
“Let me use this opportunity to congratulate the five clusters chosen for the pilot run of the OLOP Project. It is to be noted that the OLOP initiative started as far back as 2004 as the Nigerian variant of the Japanese One Village One Product (OVOP) initiative. The pilot studies conducted with the support of JICA in Kano and Niger States revealed that the initiative has the potential to turn around the Nigerian economy especially in the area of Agribusiness and to reduce rural-urban migration.
“Let me assure all of you here that SMEDAN will continue to support all entrepreneurs by providing the required information and training to them where necessary. I urge you all to take full advantage of the opportunities being presented by this Programme. Let me conclude by emphasizing that the multiplier effect of this initiative on the economy cannot be over estimated,” he said.
RAZAQ AYINLA