Bayelsa, BoI seal N2bn MSME matching fund deal, expects boost in entrepreneurship
In line with the new vista in revamping the economy, more states are beginning to deepen the growth and consolidation of Micro Small and Medium Enterprise (MSME).
Besides, the Bank of Industry (BoI) seems out to complement the efforts of both federal and states government towards the target of growing small business to create more jobs.
Accordingly, the bank has signed a new deal with Bayelsa State government to grow Small and Medium Enterprises (SMEs).
The new scheme is designed to circulate about N2bn in the economy of Micro Small and Medium Enterprise (MSME) as matching development fund to support startups and entrepreneurship development in Bayelsa State.
Relying on the proven fact that driving MSMEs especially in agriculture has the potential to achieve industrialisation and support federal government’s efforts to diversify the economy, Bayelsa State Governor, Henry Dickson, explained that entrepreneurship agreement such as the one initiated with the bank is vital for rapid economic growth in the state.
According to him, the partnership is coming at a time when the State government is making efforts to create a N10 billion entrepreneurship development fund to be managed by the ministry of industry, trade and investment, adding that the fund will be geared towards supporting businesses and lots of initiatives in the State’s fashion industry.
Dickson argued that “among other programmes created a micro finance bank for the first time to address challenges of funding. We believe that at the end, it is the small scale businesses that will drive industrialisation in Nigeria.”
Apart from BoI, governor Dickson revealed that the state will engage more banks for similar deals in other to boost access to soft loans for startups and SMEs in the state.
Responding, BoI’s Acting Managing Director, Mr. Waheed Olagunju, said the fund would only be given to people after going through a rigorous capacity building programme organised by development centres of the Pan African University in partnership with the Entrepreneurship Institute in Bayelsa and entrepreneurship development centres in the State.
He assured that the fund would be disbursed at single digit interest rate, stating that the capacity building programme will help convert aspiring entrepreneurs’ visions into business models to prepare good business models in order to give their business a high chance of succeeding.
“Globally, out of every 10 well appraised projects, about eight have the chance of succeeding. We are also going to help them identify areas where they will like to improve on, the risk involved, how to mitigate those risks in order to reduce the casualty rate of businesses.
