By Sunday Apah
The Delta State Government has established a ₦1 billion revolving fund designed to assist Micro, Small, and Medium Enterprises (MSMEs) in the region.
This fund, which will be administered by the Bank of Industry (BOI), offers financing at a single-digit interest rate.
Mr. Sonny Ekedayen, the State Commissioner for Economic Planning, revealed the initiative during a post-Executive Council press conference held at Government House in Asaba on Thursday.
Ekedayen explained that the primary goal of this initiative is to promote entrepreneurship, generate employment, and stimulate economic development by making financial resources available to small business owners.
He noted that the fund is intended to provide low-interest loans, helping businesses grow and increase their operational efficiency.
“This announcement is great news for MSMEs and the wider business community in Delta State, which includes manufacturers, hoteliers, and small-scale industries,” he stated.
“The Executive Council has wisely approved this ₦1 billion fund with the Bank of Industry, marking a significant milestone for the Oborevwori administration.”
“This initiative is crucial because it allows all businesses in Delta State, regardless of size, to access loans from the Bank of Industry at attractive interest rates.”
“I am optimistic that this news will be well received by the commercial sector in the state. Currently, the prime lending rate stands at approximately 30 percent, which poses substantial barriers for many businesses.”
“With this new revolving fund, companies in Delta State will have access to financing at single-digit interest rates through the Bank of Industry.”
“It is important to clarify that this is a loan program, not a grant. Only committed business owners with a solid track record will qualify for these funds, which will feature subsidized interest rates and flexible repayment terms.”
“While most traditional banks offer loans for brief periods, usually between 90 to 100 days, this initiative allows businesses to secure loans for durations ranging from one to five years, with some room for moratoriums.”
“I am truly excited about this opportunity, as I understand the financial challenges businesses encounter, especially regarding working capital.”
“This initiative is commendable, and I anticipate a significant positive response from the business community.”
Additionally, the Economic Planning Commissioner shared that the Executive Council has also approved the State’s Medium-Term Development Plan for 2024-2027, calling it a vital framework for the Governor’s MORE Agenda.
He emphasized, “The Delta State Medium-Term Development Plan Number 3 (2024-2027) received approval today. Its importance cannot be overstated, as it will guide all project approvals and implementations based on this strategic document.”
“It embodies the vision and mission of the Governor as outlined in his MORE Agenda, serving as a guide for all government expenditures. I assure you that we are pursuing these goals without incurring any debt.”
