ASABA/Nigeria: The Delta State Government on Tuesday signed a Memorandum of Understanding (MoU) with the Bank of Industry (BoI) for the management of a ₦1 billion revolving fund to be disbursed as loans to Micro, Small and Medium Enterprises (MSMEs across the state.
The MoU was signed at Government House, Asaba, where Governor Rt. Hon. Sheriff Oborevwori described the initiative as a major milestone in his administration’s drive for inclusive growth, job creation and sustainable economic development under the MORE Agenda.
“Today marks a remarkable moment in our unwavering commitment to job creation, inclusive growth and sustainable economic development,” the governor said, explaining that the fund, approved by the State Executive Council in 2025, was designed to tackle the long-standing challenge of limited access to affordable finance confronting MSMEs.
Oborevwori noted that MSMEs remain the backbone of a strong economy, accounting for the highest employment rate and serving as critical drivers of growth. He said the revolving loan facility would provide traders, artisans, agro-processors and small-scale manufacturers access to capital at single-digit interest rates, enabling them to expand operations, create jobs and contribute meaningfully to the state’s economy.
According to the governor, the scheme was deliberately structured to reduce the burden of high borrowing costs that often stifle entrepreneurial growth, while ensuring sustainability through a strict recovery process.
“This ₦1 billion is a revolving fund. Loans granted must be recovered so that other eligible entrepreneurs can benefit. This responsibility is non-negotiable and must be carried out with the highest level of diligence and integrity,” he stressed.
Oborevwori said the choice of the Bank of Industry as fund manager was informed by its reputation as Nigeria’s foremost development finance institution, with strong credit appraisal systems and business support frameworks.
“Our partnership with the Bank of Industry goes beyond finance. It integrates critical business development and support services that entrepreneurs need to succeed in today’s competitive environment,” he said, expressing confidence in the bank’s capacity to manage the fund transparently and efficiently.
Reflecting on the state’s history of empowerment programmes, the governor said while grants remain relevant, excessive reliance on them could weaken accountability.
“When grants are given without structure, some beneficiaries may not value the funds. This loan-based model will instil financial discipline, help entrepreneurs appreciate the value of money and promote sustainable growth,” he explained.
He clarified that the revolving fund would complement, rather than replace, existing empowerment initiatives, assuring that grants and other support programmes would continue where necessary.
“This MoU is another critical pillar of our broader economic empowerment strategy,” he added.
On the timing of the programme, Oborevwori disclosed that its rollout was shifted from December to January to ensure greater impact, noting that January is a period when entrepreneurs are more focused on rebuilding and expanding their businesses for the year.
He further assured that the fund could be scaled up significantly if properly managed.
“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. This is just a starting point,” the governor said.
Speaking earlier, the Managing Director of the Bank of Industry, Olasupo Olusi, described the partnership as a strategic step towards expanding enterprise activities and unlocking sustainable economic growth in Delta State.
Olusi said the ₦1 billion revolving fund would strengthen MSMEs by improving access to affordable finance and deepening collaboration between the state government and Nigeria’s premier development finance institution.
He noted that the initiative aligns with the BoI’s mandate of translating policy priorities into practical financing solutions that address business challenges across key sectors of the economy.
“As Nigeria’s leading development finance institution, the Bank of Industry remains committed to working with governments and the private sector to create opportunities for businesses to innovate, create value and remain competitive,” he said.
The BoI managing director commended the Delta State Government for its commitment to economic development, describing the MoU as a clear demonstration of the Oborevwori administration’s resolve to build a resilient private sector and drive long-term prosperity for the state and its people.
