ASABA/Nigeria: The Delta State Government is set to roll out a N1 billion Small and Medium Scale Entrepreneurship Fund in a major push to drive local economic growth and empower small businesses across the state.
Commissioner for Economic Planning, Mr. Sony Ekedayen, disclosed in Asaba that the initiative, approved by the State Executive Council, will provide entrepreneurs with critical access to affordable funding through a partnership with the Bank of Industry.
Ekedayen said the fund is designed to offer single-digit interest loans to Deltans engaged in various small and medium-scale enterprises, enabling them to expand their businesses and contribute more meaningfully to the state’s economy.
“Small and medium enterprises are the backbone of any virile economy,” Ekedayen stated. “Governor Sheriff Oborevwori believes that strengthening this sector is a key strategy for building a resilient Delta economy.”
Under the scheme, beneficiaries will enjoy a flexible repayment window ranging from one to five years, alongside a moratorium period of up to 12 months. The loans will attract an interest rate of about 9 percent — a stark contrast to the 35 percent rates typical of commercial bank loans.
“Interest for this loan is going to be in the region of 9%. And if you know, you know. Lending rates at commercial banks are around 35%. So, if you’re getting the loan at 9%, it would take a thoroughly unserious businessman not to pay back within the very flexible repayment period,” Ekedayen said.
He emphasized that the structure of the fund was designed to ensure high accessibility without compromising repayment discipline, as beneficiaries will be required to meet the Bank of Industry’s credit criteria and provide acceptable collateral.
“Most commercial bank loans are usually short-tenured — 90, 180, maximum 360 days. But under this scheme, we’re looking at one to five years and a moratorium of at least one to 12 months. It doesn’t get any better than this,” he added.
Ekedayen appealed to residents to continue supporting the policies of Governor Oborevwori’s administration, assuring that the governor remains committed to taking development to all corners of the state.
As Governor Oborevwori’s administration approaches the second-year mark of its first tenure, the state government’s focus on social welfare investments and support for small businesses underscores a deliberate strategy to drive inclusive and sustainable economic growth across Delta.
