Rivers State Governor, Sir Siminalayi Fubara, on Friday, launched the N4 billion matching fund loan scheme expected to stimulate business activities and create wealth in the state.
The loan scheme, which was launched at the Dr Obi Wali International Conference Centre in Port Harcourt, signalled the commencement of the disbursement of the Rivers State Government/Bank of Industry (BOI) Limited N4 billion marching fund loan for nano, small and medium-scale businesses in the state.
The Governor, at the event, said that lack of access to credit had continued to aggravate financial exclusion and choked the prospects for individuals to realise their economic aspirations for a better life.
But with the scheme, which is a partnership between Rivers State Government and the Bank of Industry BOI, now launched, he emphasised that the surest path has been secured to achieve entrepreneurial success while serving as an enabler of economic prosperity in the state.
“Today, we are all here to witness the formal launch and distribution of cheques to 3,066 micro, small, and medium-scale enterprises and 100 companies in the state from all 23 local government areas, including businesses owned by non-indigenes valued at over N3.6billion only.
“We are satisfied with today’s outing and professionalism, believing even more strongly that the potential outcome will be greater to both BOI and the Government and good people of Rivers State”, the Governor declared.
He explained that he promised, during his electioneering campaigns, to support entrepreneurial development and the growth of businesses through access to credit in the form of soft loans.
He added that upon assumption of office, he noticed more closely how most businesses, especially those of small scale, struggled while some either died or gasped in accessing credit that was only offered by banks at neck-breaking interest without success.
Gov Fubara said; “As a State, we cannot talk about economic growth without stimulating business activities to create wealth and jobs through policies and programmes that will engender greater public access to credit and financial inclusion.
“MSMEs are well-known as critical drivers of inclusive economic growth and development. By empowering our people to cultivate available economic opportunities, access to credit is a powerful tool for achieving financial security.
“We can only keep imaging the economic value that the over 3,000 MSMEs would add to the positive economic dynamics of Rivers State and the local government areas in terms of gross domestic product, increased tax returns, employment creation, income distribution and production of goods and services.”
He explained further that even if the loan appeared very liberal, it is not given as charity, and insisted that beneficiaries must pay back so that others can also access it. The governor instructed the management of the Rivers State Microfinance Agency (RIMA) to monitor the progress of the beneficiaries in their businesses and ensure a 100 per cent recovery of the loans to guarantee the sustainability of the programme.
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Governor Fubara noted the gains of the symbiotic economic partnership between the State Government and BOI, and the transformed commitment to further strengthen and cultivate it for the benefit of the people of the state.
In his address, the Managing Director/Chief Executive Officer of Bank of Industry (BOI) Limited, Dr Olasupo Olusi, represented by the Executive Director of Corporate Services and Commercial, Mr Usen Effiong, said they were particularly interested in ensuring that the collaboration is realised in steering socio-economic growth, creating jobs, checkmating social vices and growing the IGR of Rivers State.
He said; “BOI remains committed and a strong pillar of development financing in Nigeria for over 60 years. Our remarkable record and total assets exceed N4 trillion, which makes BOI the largest and most successful development finance institution in the nation.
“It will interest us to know that our total investment in Rivers State as at today stands at N55.65 billion, which accounts for 55 percent of the total investment in the entire South-South. So, Rivers State alone is taking the chunk of our investment.”
In his welcome address, the Managing Director and Chief Executive Officer of Rivers State Microfinance Agency (RIMA), Pastor Jonathan Tobin, said it was exciting that they were allowed to contribute to achieving the dream project of Governor Fubara, christened “Touching Lives, Creating Wealth.”
Pastor Tobin stated that the timing of the launching of the scheme was auspicious because it was coming when the operating capital of most businesses had been eroded.
He explained that the high inflation rate and fluctuation of the foreign exchange regime have posed unbearable challenges to most micro-businesses, saying that the interest rate for loans collected under the scheme is a single digit, which is 7.5 percent per annum, and reckons as the lowest in the country.
“Today, Your Excellency, we have four categories of borrowers. Those who are borrowing from N1,000 to N1,000,000. Those who are borrowing from above N1,000,000 to N50,000,000 are treated by our partners, Bank of Industry.
“If you are borrowing from N100,000 to N450,000, all you need to provide is just your passport photograph, the passport photograph of your guarantor, your NIN, and local government identification.
“For those who are borrowing from N500,000 to N1,000,000, all they need to provide is two passport photographs, their NIN, their means of identification, BVN, a guarantor with a cheque leaf. These categories of borrowers are treated in RIMA,” he added.
Pastor Tobin said further: “Those who are borrowing from above N1,000,000 to N10,000,000 will be treated in Bank of Industry. All they need is just proof of registration of their businesses, two guarantors, a valid identification card, and a simple business plan.
“For those who are borrowing N10,000,000 to N50,000,000, all they need is a Corporate Affairs Commission Registration, two years’ audited financial record, a Certificate of Occupancy, BVN, tax clearance of the company and or the directors.
“Your Excellency, as at today, we have brought on board 3,066 beneficiaries, and they all are requesting N1.632 billion. Interestingly, women borrowers account for 58 percent while the men borrowers account for 42 percent.”
He urged Rivers people interested in forging a good and sustainable business path to approach the agency for support to enable them to contribute to the economic revival and growth of the State.
The highlight of the event was the official launch of the loan scheme and the presentation of cheques to some successful beneficiaries from across the 23 LGAs and some small business owners by the State Governor, Sir Siminalayi Fubara.
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