The Delta State Government has officially signed a Memorandum of Understanding (MoU) with the Bank of Industry (BoI) to manage a ₦1 billion revolving loan fund aimed at supporting Micro, Small, and Medium Enterprises (MSMEs) in the state.
The ceremony took place on Tuesday at the Government House in Asaba, marking a significant milestone in the administration’s commitment to economic growth and job creation under the MORE Agenda.
Governor Rt. Hon. Sheriff Oborevwori highlighted the initiative as essential to addressing the longstanding challenge of access to affordable finance for MSMEs, which he described as crucial to the nation’s economic backbone.
“By providing our traders, artisans, agro-processors, and small-scale manufacturers access to capital at single-digit interest rates, we are equipping them with the resources they need to expand their businesses and create jobs,” he said.
The governor emphasized the importance of financial discipline in this initiative, stating, “This ₦1 billion is a revolving fund. Loans granted must be recovered so that other eligible entrepreneurs can benefit.”
He clarified that the structure aims to reduce the high borrowing costs that often hamper entrepreneurial growth while ensuring sustainability through the revolving loan system.
The state government chose the Bank of Industry as the fund’s manager due to its solid reputation as Nigeria’s leading development finance institution, equipped with strong credit appraisal systems and business support frameworks. “Our partnership with the Bank goes beyond finance; it includes vital business development services needed to thrive in a competitive economy,” Oborevwori added.
The governor reassured that this loan-based model would complement, not replace, existing empowerment schemes, asserting that it would instill financial discipline among beneficiaries, encouraging wise investments for sustainable growth. He also noted that the initiative was strategically scheduled to launch in January, a time when entrepreneurs are eager to rebuild and expand their businesses.
Looking ahead, Oborevwori expressed a hopeful vision for scaling the fund, stating, “If this fund demonstrates impact, there will be no limit to what we can do together. We can scale it to ₦10 billion, ₦20 billion or even ₦30 billion.”
Dr. Olasupo Olusi, Managing Director of the Bank of Industry, praised the partnership, asserting that it would enhance enterprise activities and foster sustainable economic growth in the state.
He reaffirmed the bank’s commitment to helping businesses innovate and create value while maintaining competitiveness in their respective sectors.
The signing of the MoU was hailed as a forward-thinking step towards strengthening Delta’s private sector and enhancing the state’s economic landscape for the benefit of its residents.
