Oyo govt begins disbursement of support loans to SMEs

The Oyo State Government initiated the disbursement of support loans to selected small and micro-enterprise (SME) owners in the state as part of its Sustainable Action For Economic Recovery (SAfER) package on Monday. This intervention program was developed to mitigate the impacts of subsidy removal, inflation, and a high exchange rate on the state’s residents.

Under this disbursement program, owners of micro-enterprises can receive loans ranging from N50,000 to N250,000, while those with small enterprises are eligible for loans ranging from N250,000 to N1 million. The symbolic presentation of the checks took place at the State Secretariat in Ibadan, and the SAfER committee chairman, Honourable Segun Ogunwuyi, emphasized that this initiative aims to support small and micro-enterprises, which are critical components in the effort to stimulate the state’s economy.

Ogunwuyi also highlighted that providing loans to SMEs is just one of several interventions included in the SAfER package. These interventions encompass a N1 billion loan to farmers, food aid for the most vulnerable, mass transit services across the state, and the enrollment of 100,000 vulnerable individuals in the state health insurance scheme.

Chairman of the SME sub-committee, Professor Musibau Babatunde, pointed out that the selected SMEs will have a three-month moratorium before they start repaying their loans, and the interest rates will be at a single-digit rate. He encouraged the beneficiaries to invest the loans in profitable ventures and emphasized the importance of credible guarantors.

The event was attended by the heads of seven microfinance banks responsible for disbursing the funds across the geopolitical zones of the state. These microfinance banks include Full Range Microfinance Bank, Ibadan; Isale Oyo Microfinance Bank, Oyo town; Excel Microfinance Bank, Eruwa; NUT Oke Bola Microfinance Bank, Ibadan; Caretakers MicroFinance Bank, Ogbomoso; Kadupe Microfinance Bank, Saki; and Ebedi Microfinance Bank, Iseyin.