Mukhail Adetokunbo Abiru, the senator representing Lagos East Senatorial District, has provided a revolving N300 million loan facility at 6percent annual interest rate to empower micro, small and medium enterprises (MSMEs) in the district.
Also serving as the
chairman of the Senate Committee on Industries, Abiru officially unveiled the N300 million constituency intervention revolving loan at 6percent interest per year for MSMEs and entrepreneurs in Lagos state’s Somolu, Kosofe, Epe,
Ibeju-Lekki, and Ikorodu area Thursday.
Furthermore, the loan term ranges from 3 to 18 months, with a N100,000 – N1,000,000 cap per beneficiary.
According to investopaedia, “a revolving loan facility is a credit deemed flexible due to its repayment and re-borrowing accommodations.”
Speaking at the occasion on why he supports MSMEs in the area, Abiru said that MSMEs play an important role
in the economic development and contribute significantly to the national GDP.
“Access to capital has been highlighted by numerous studies as one of the most significant difficulties confronting small firms in the Nigerian economy,” he said.
According to him, “Many MSMEs, in desperation, obtain loans from informal financial markets and finance companies at exorbitant interest rates, which can range between 50 and 120 percent per annum. MSMEs are also subjected to many complex requirements such as loan collaterals, strenuous/ laborious documentations, and bureaucratic processes and procedures.
“This Constituency Intervention Revolving Loan for MSMEs would help our numerous small enterprises in the Lagos East Senatorial District. To secure the scheme’s long-term viability, we’ve created a risk management structure to make it a lasting and revolving facility that will benefit many more people than the first group of beneficiaries.”
Abiru, who is being addressed as ‘DoingGood’ senator, was commended by dignitaries such as Lagos
State Governor, Babajide Olusola Sanwo-Olu, stakeholders in the finance industry and party leaders for keeping his pledge to the people to alleviate
“I congratulate my dear brother, Senator Abiru, on his effective representation in the red chamber and the several empowerment initiatives he has started, including the one being launched here today. Governor Sanwo-Olu, who was represented by his deputy chief
of staff, Gboyega Soyonwo, said.
According to him, “This is an illustration of the benefits of democracy our people deserve. We will not relent in ensuring that the welfare and wellbeing of our people remain our one and only priority.”
In similar vein, Olawale Edun, chairman of ChapelHill Denham Group and event chairman, lauded the Senator’s significant contribution to governance as an accomplished professional.
“Due to the fact that SMEs are one of the most active sectors in terms of economic activity, this programme aims to finance them. It’s a revolving fund, and it’s really important for the receiver to pay it back so that both others and they themselves may benefit, according to Edun.
Olukayode Pitan, managing director of Bank of Industries, who was also present at the occasion, urged MSMEs to reposition their companies in light of the post-pandemic realities in his remarks.
Pitan said: “The pandemic gave us numerous life-altering business lessons. Now that we know it, we can say that the main goal of new business owners is not just money, but also reliable business intelligence and knowledge to direct their development, survival, and success strategies. Due to the epidemic, tenacious business owners had to modify every aspect of their operations to cope with the new economic conditions, from creating and marketing products to reaching clients.”
Beneficiaries, who had been shortlisted for the high concessional loan were elated and thanked the Senator for providing the much-needed support for their respective businesses.
“Initially, I was a doubting Thomas when I heard about it through my association, Lagos State Barbers Association,” said Akinremi Oladele, a barber whose saloon is in Bariga.
“Nonetheless, I applied and today, I am a beneficiary, with the sum of N300,000. I am going to use the fund to renovate my barbing saloon to a global standard and I will pay back my loan as and when due,” he said.
Abiru, who has been in office for 20 months, gave N50,000 to each of 1,250 market women in June 2022 as part of his empowerment programme. He also gave out N20,000 each as operating capital to 200 rural farmers.