Gov. Alex Otti of Abia State launched the disbursement of a 1 billion Naira interest-free loan under the state cooperative support scheme for 10,000 nano and micro business operators drawn from the 184 electoral wards of the state on Thursday.
Launching the scheme in Umuahia, Otti said the initiative represents the practical commitment of the state government to support its numerous nano, micro, and small-scale entrepreneurs.
He disclosed that beneficiaries were selected from among traders, farmers, and artisans with the aim of creating wealth.
According to the governor, “Thousands of the beneficiaries selected for this batch are petty traders, farmers, and artisans who have over the years toiled on their own without the kind of structured support that their peers from other parts of the world take for granted,” adding, “Our model is geared towards improving production, creating jobs, and reducing poverty.”
Otti said the scheme aligns perfectly with the strategic development agenda of his government, which is geared at improving the welfare of the general populace.
He said the target is beyond now while the projection is to boost the economy, disclosing, “Our target is beyond the present number of beneficiaries, which is to reach about 100, 000 businesses directly over the next 36 months because we are optimistic that today’s beneficiaries will put in an honest effort to repay the loans in time so that others can benefit.
“The projection is that the injection of about a billion naira into the economies of the various communities in the state through the interest-free revolving loan scheme will ultimately lead to a jump in the volume of agricultural outputs brought to the markets in the short to medium term, new orders for business inputs and a measurable rise in the value of the gross domestic product of the local communities.”
He assured that an appropriate mechanism for monitoring the scheme would be put in place, and as soon as a measurable rise in business consciousness amongst the people at the grassroots is seen, the government will go into partnership with international development institutions and agencies to increase the pool of funds available for borrowing so that instead of the initial 100,000 direct beneficiaries projected for the next 36 months, it could raise the estimate to about a million or more beneficiaries.
Speaking, the Commissioner for Women Affairs and Poverty Alleviation, Mrs Blessing Felix, commended Governor Alex Otti for his consistent commitment to the welfare of Abia people and for providing the resources to run the scheme. She stated that it is proof that help has indeed come.
The Mayor of Aba North Local Government Council, Ide John Udeagbala, speaking on behalf of others, thanked the governor for a well-thought-out initiative aimed at empowering small business owners across the state.
He described the scheme as strategic to the economic emancipation of small business owners, especially rural dwellers, noting that the multiplier effect would lift the dependents of the beneficiaries from abject poverty.
Earlier in his address, the Senior Special Assistant to the Governor on Cooperative Societies, Hon. Ishmael Onuoha, emphasized that the interest-free loan, which is not a free handout, is structured in a way that anyone who makes gains would be given more money. He assured that the scheme would be monitored to ensure compliance.
Onuoha, who thanked Governor Otti for making good on one of his campaign promises, which is providing revolving loans to create wealth, described it as a commendable move, saying that it is the first time one billion naira was made available to support low-business operators in Abia State to boost the economy.
Responding on behalf of the beneficiaries of the interest-free loan, Pastor Mrs Mercy Alamba thanked Governor Otti for the gesture extended to them, saying that they had not seen it in that form before and enjoining her fellow beneficiaries to utilise the funds well.
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