FG: MSMEs to Get Millions of Naira Loans Without Collateral
The federal government promise to give out loans to Medium and Small Scale Enterprises with little or no collateral at only 5% interest rate for 5 to 7years.
The Acting President, Professor Yemi Osinbajo said this in the National MSME Award 2018, on behalf of the federal government. He said they are in collaboration with the Central Bank and Commercial Banks across the country to provide loans to entrepreneurs.
He further reiterated the importance of MSME to the nation’s economy which necessitated the innovation of the award.
Here is his full speech:
“Day after day, you open your doors for business, in the face of challenges, and you put in hard work and dedication and innovation to serve your customers, you create jobs, and make a positive difference in your communities. MSMEs, we celebrate all of you.
MSMEs though small in units account for 50% of our GDP collectively. We created the MSME Clinic to provide a one stop shop solution for MSMEs. Across these states we have travelled, I have met outstanding MSMEs.
I recall Attajiri Rice in Sokoto, Itele Shoes in Kwara, Glimmer Touch in Calabar, Ntoko Farms in Aba, Abia state, US Amaasaki Enterprises in Katsina. My good friend, Awwal Saleh, also in Katsina, Mai Jama Shoes in Plateau, & Better Products Limited in Ogun State.
We consequently created the MSME Award to recognize the efforts and contributions of MSMEs in Nigeria. There are many others that I have not mentioned, but who are just as deserving of recognition and commendation. I am extremely proud of you.
We have also partnered with the Central Bank of Nigeria and Commercial Banks, to launch a credit facility that we will make available to MSMEs; loans from N2 million to N10 million, with little or no collateral, for 5 to 7 years, and at an interest rate of 5 percent.
The government is also exploring an initiative to allow a special window of 90 days for MSMEs, who have not registered their businesses to do so at a highly subsidized price. This is a special initiative of the Corporate Affairs Commission.” He concluded.