Politics
N300 Million Revolving Loan by Senator Tokunbo Abiru : as he Fulfills Promise
N300 Million Revolving Loan by Senator Tokunbo Abiru : as he Fulfills Promise
Abiru Is Keeping Faith With The People Through Effective Representation- Gov Sanwo-Olu
The Chairman, Senate committee on industries and the Senator representing Lagos East Senatorial District, Distinguished Senator Mukhail Adetokunbo Abiru, FCA on Thursday launched the N300Million Constituency Intervention Revolving Loan at 6% per annum for Micro, Small and Medium Enterprises (MSME) and entrepreneurs in Lagos East.
The #DoingGood Senator was commended by dignitaries including the governor of Lagos State, Mr Babajide Olusola Sanwo-Olu, top executives of finance agencies in Nigeria and leaders of the party for fulfilling his promise he made to the people.
Beneficiaries who had been shortlisted for the high concessional loan were elated and thanked the Senator for providing the much needed support for their respective businesses.
N300 Million Revolving Loan by Senator Tokunbo Abiru
The fund size is N300 million at a highly concessional 6 % (All-in) single digit Interest Rate Per annum. Loan tenor between 3 to 18 months and limit per beneficiary is pegged N100,000 – N1,000,000.
On why he is supporting MSMEs in the district, Abiru, a retired bank Chief Executive and former Commissioner for Finance in Lagos State said MSMEs played a pivotal role in economic development adding that they contribute hugely to the national Gross Domestic Product (GDP).
He said, “Micro, Small and Medium Enterprises (MSMEs) play an important role in the economic development process. This reality is acknowledged globally. They play crucial roles in job creation, income redistribution, mobilization of small savings, technology adaptation, economic inclusion and many more. In Nigeria, the MSMEs account for about 50% of our Gross Domestic Product and over 80% of employment and have footprints across all sectors of our economy. Therefore, they offer good channels for the realization of development objectives of job creation, economic inclusion and poverty reduction.
He said, “Micro, Small and Medium Enterprises (MSMEs) play an important role in the economic development process. This reality is acknowledged globally. They play crucial roles in job creation, income redistribution, mobilization of small savings, technology adaptation, economic inclusion and many more. In Nigeria, the MSMEs account for about 50% of our Gross Domestic Product and over 80% of employment and have footprints across all sectors of our economy. Therefore, they offer good channels for the realization of development objectives of job creation, economic inclusion and poverty reduction.
“Access to finance has been identified by various studies as one of the biggest challenges faced by small businesses in the Nigerian economy. Many MSMEs, out of desperation, take loans from informal financial markets and finance companies at outrageous interest rates, sometimes as high as between 50% – 120% per annum. MSMEs are also subjected to a lot of complex requirements such as loan collaterals, strenuous documentations, and bureaucratic processes which impede access to credit by these small businesses.
“This Constituency Intervention Revolving Loan for MSMEs will go a long way in bringing succor to our numerous small businesses in the Lagos East Senatorial District. To ensure the sustainability of the scheme, we have developed a risk management framework to make the scheme an enduring and revolving facility that will impact many more people beyond the first round of beneficiaries”.
Meanwhile, in June 2022, the Senator had dolled out N50,000 each to about 1,250 market women totalling N62.5million and also provided hand planters and working capital of N20,000 to about 200 rural farmers.