EKSG launches N1 billion micro credit fund to boost MSMEs

December 05, 2024

By Samuel Ogunsona

The Ekiti State Government has launched the EKSG-BOSAK MB Billion Naira Micro Credit Fund, a N1 billion initiative aimed at supporting Micro, Small and Medium Enterprises (MSMEs) across the state.

This move is expected to empower small businesses, create opportunities for young people to gain employment, and drive economic growth.

According to Governor Biodun Oyebanji, “This initiative is designed to help traders grow their businesses and create opportunities for young people to gain employment. When businesses grow, they hire more people and that is how our communities develop.”

The program includes embedded education loans and health insurance benefits to enhance beneficiaries’ quality of life.

Governor Oyebanji clarified that “this is not a state government loan, the funds are managed by the bank with the government subsidizing the interest rate to make it affordable.”

Commissioner for Trade, Industry, Investment and Cooperatives, Mrs. Omotayo Adeola, highlighted the program’s success since its pilot phase began two years ago. She noted that the fund initially started with a smaller allocation before being scaled up due to its impact on market women and traders.

“The traders have performed creditably well by paying back their loans as and when due. Mr. Governor was impressed with their performances and approved an additional N500 million, making it N1 Billion,” Adeola said.

The State Commissioner praised the Governor’s efforts in fostering business growth through access to low-interest loans.

“This initiative is aimed at empowering entrepreneurs, boosting economic growth and reducing unemployment.”

Kolade Bello, Group Chief Executive Officer of Bosak Holdings, applauded the State Government’s commitment to poverty alleviation through the program.

“A poor person is often poor due to a lack of opportunities, this initiative provides the support they need to scale their businesses, earn more income and improve their family’s well-being.”

Top government officials, including the Special Adviser to the Governor on Tertiary Education, Prof. Akerm Azeez, and the Permanent Secretary, Ministry of Trade, Industry, Investment and Cooperatives, Mr. Dele Ogunsemoyin, attended the event.

The beneficiaries expressed gratitude to the State Government for the initiative, noting that the loans had significantly boosted their businesses and that the low interest rates made repayment easy.