Senator Tokunbo Abiru, representing Lagos east, has unveiled a N100 million business loan support for micro, small and medium enterprises (MSMEs).
The senator made the announcement at an MSME workshop hosted in conjunction with the Fate Foundation.
The loan will offer the businesses working capital and finance for equipment procurement at a highly subsidized interest rate.
Abiru who serves as the chairman of the Senate committee on industries stated that the N100 million loan facility would be implemented in partnership with the Small and Medium Enterprises Development Agency (SMEDAN).
He noted that the beneficiaries would be able to apply for loans ranging from 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 percent of the country’s GDP and account for over 80 percent 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.
Also, the Bank of Industry (BOI) agreed to support the scheme with an additional N100 million.