Oyo govt begins disbursement of support loans to SMEs

The Oyo State Government on Monday presented cheques, worth Five Hundred million Naira (N500m) to participating micro finance banks across the seven geopolitical zones in the state, as loan support to small and micro enterprises under the Sustainable Action for Economic Recovery (SAfER).

The symbolic presentation of the cheques to the Micro finance banks was held at the conference room, office of the Secretary to the State Government, Secretariat, Agodi Ibadan.

Presenting the dummy cheques to the representatives of the micro finance banks, the Chief of Staff to the Governor, Hon Segun Ogunwuyi noted that the funds will cushion the hardship induced by the removal of the fuel subsidy.

Ogunwuyi, who also doubles as the Chairman, SAfER committee, added that the Oyo state government is ready to support small and micro enterprises, maintaining that the beneficiaries were selected based on their business capacities.

He added that, micro businesses can access between N50,000 to N250,000, while small businesses also have the opportunity of accessing N250,000 to N1million loans under the scheme.

Ogunwuyi stressed that the participating microfinance banks selected beneficiaries without any political influence.

Earlier in his remarks, the Chairman, SAfER Small and Medium Enterprises (SME) sub-committee, Professor Musibau Babatunde, explained that the loan support will not only boost SME, which is the baseline of the state economy activities, but would also help in achieving sustainable development goals which is to cushion the effects of hardship on people.

Prof. Babatunde admonished the beneficiaries to fulfill the obligation of repayment in shortest time so as to allow others to benefit from the laudable scheme.

He added that, the loan is of no collateral and the beneficiaries have three months moratorium period before the commencement of repayment.

Also in his welcome address, the Director-General, Oyo State Investment of Public Private Partnership Agency, (OYSIPA), Barrister Olatilewa Folami, enjoined the beneficiaries to deploy the loan into profitable business and give opportunities for others to benefit.

Speaking on behalf of the beneficiaries, Mr. Sunday Fadipe pledged to use the loan judiciously, for the purpose it is meant for, as well as contribute to the development of the state.

The participating microfinance banks include: NUT, Oke-ado, Ibadan; Full range Microfinance Bank, Iwo-road; Caretaker Microfinance Bank, Ogbomoso.

Others are Isale Oyo Microfinance Bank, Oyo town; Excel Microfinance Bank, Eruwa; Ebedi Microfinance Bank, Iseyin and Kadupe Microfinance Bank, Saki.