OYO state government has frowned at the failure of some traders to return loans amounting to about N153.4 million given to them from the Central Bank micro, small and medium enterprise development fund of N350 million.
The state government, through Executive Secretary, Bureau of Investment Promotion, and Mr Yinka Fatoki bemoaned the attitude of some of the 7,000 beneficiaries to paying back the loans, since January 2015, whereby N196.6 million had so far been returned.
Fatoki, speaking at a meeting with heads of traders associations on Tuesday, said the aim of N350 million disbursed as revolving loan was defeated owing to the incomplete return and subsequent inability of give the loans to another set of traders.
He consequently mandated the heads of the seven recognised traders’ association through which the funds were disbursed to ensure that their members (beneficiaries) return the loans by end of April.
“N350million was disbursed in January 2015 from the Central Bank micro, small and medium enterprise development fund to assist traders in form of revolving loan at the rate of N50 million per trade associations.”
“7,000 people were given N50, 000 but government’s efforts have not been reciprocated by the associations. Out of the N350million, but only N196.6 million has been recovered, as at end of February, this year.”
“The initial N350million was supposed to have ended in December 2015, and another set of beneficiaries ought to have taken the loan for another 12months by January 2016. But as we speak, the initial set of beneficiaries is owing us the funds and is depriving other members of the associations the benefits.”
“The Oyo state has given the respective associations the grace of one month. By the end of April, we expect the market leaders to have worked earnestly to ensure substantial recovery so that another set of beneficiaries can take these funds. The wish of government is to support traders and artisans and for this to come to fruition, we need the beneficiaries to be willing to refund the funds that government gives to them so that we can roll over these funds as many times as possible,” Fatoki said.
Operations manager, SEAP Microfinance bank, Laniya Olawale, a key stakeholder in the disbursement, attributed the average return rate to feelings of some traders that the fund was their share of the government’s largesse.
‘Some feel any fund from government is their share of the national cake and they are dragging their feet in making payment as at when due. But, we are appealing that the fund must be paid back.
We believe there will be repayment of all the funds in the next few months,” he said.
President, Ibadan Joint Traders Association, Alhaji Daud Oladepo, assured that efforts would be intensified to ensure that all beneficiaries returned the loan.
“By the grace of God, if we work together as associations, there will be results within the one month ultimatum. We will work to ensure that members of the associations pay back their loans,” Oladepo said.
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