TheCable

Tokunbo Abiru, senator representing Lagos east, has announced N100 million business loan support for micro, small and medium enterprises (MSMEs).

He made this known recently at a MSME workshop organised in conjunction with the Fate Foundation.

The loan is expected to provide the businesses with working capital and finance for equipment acquisition at a highly subsidised interest rate.

Abiru, chairman, senate committee on industries, said the N100 million loan facility would be executed in partnership with the Small and Medium Enterprises Development Agency (SMEDAN).

He said beneficiaries would be able to access a loan of N100,000 – N1 million at a low interest rate of six percent per annum.

Highlighting the critical roles MSMEs play in the nation’s economic development, the lawmaker said: “MSMEs account for the majority of businesses worldwide and are important contributors to job creation and global economic development. They represent about 90 percent of businesses and more than 70 percent of employment worldwide.”

“Formal SMEs contribute up to 40 percent of national income (GDP) in emerging economies. These numbers are significantly higher when informal SMEs are included. The latest SMEDAN/NBS MSME Survey indicates Nigeria’s SMEs contribute nearly 50 per cent of the country’s GDP and account for over 80 per cent of employment in the country.

“It has been projected by the World Bank that about 600 million jobs will be needed by 2030 to absorb the growing global workforce, which makes SME development a high priority for many governments around the world. In emerging markets, most formal jobs are generated by SMEs, which create seven out of 10 jobs.”

Abiru said it was crucial to assist the struggling businesses impacted by the devastating COVID-19 pandemic with workable business solutions in the new normal world.

At the event, the Bank of Industry (BOI) also agreed to commit an additional N100 million to the loan scheme.

On his part, Olawale Edun, a former Lagos state commissioner of finance, applauded Abiru for the gesture.

He further described the business aid as a great initiative.