• Thursday, February 29, 2024
businessday logo

BusinessDay

Borno Govt. to secures N2bn SME loan from CBN

SMEsThe Borno Government said on Friday, that it was working on plans to secure a N2 billion loan from the Central Bank of Nigeria (CBN) for Small Scale Industrialists in the state.

Gov. Kashim Shettima disclosed this while receiving members of the state chapter of the Independent Petroleum Marketers Association of Nigeria (IPMAN) in his office in Maiduguri.

Shettima said that the object was to kick- start the economy of the state by providing soft loans to businessmen who affected by the Boko Haram insurgency in the state.

“The CBN has accepted to provide a N2 billion loan to small scale industrialists in the state.

“Part of the money will be distributed to our businessmen in different parts of the state as loan, to enable them kick-start their businesses after suffering from the Boko Haram insurgency,” he said.

Shettima said that government would also look at the possibility of extending the loan to members of the chapter of IPMAN because of their role in maintaining the state economy.

He said that government was also making contact with the Bank of Industry to secure another N1billion loan facility to businessmen in the state.

“We are also making contact with the Bank of Industry to secure a N1billion facility for our industrialists so that they can be able to replenish their business”.

He, however, expressed reservation on the interest rate charged on loans by financial institutions in Nigeria. “My fear on these loans has to do with the interest element payable.”

“If the interest goes beyond two digit, it will be difficult for industrialists to break even and still pay back the loan”.

He said that the state government would take the responsibility of paying the interest on the loan while the beneficiaries would back the loan only.

Speaking Earlier, IPMAN Borno Chairman Alhaji Mohammed Kulu, told the governor that the visit was aimed at presenting the new executive of the organisation to him.

Kulu commended Shettima for his numerous achievements in office in spite the prevailing security challenge in the state.

(NAN)