Edo State and LAPO sign agreement to disburse N300m to MSMEs across 18 LGA
The Edo State Government has signed a Memorandum of Understanding (MoU) with LAPO Microfinance Bank for the disbursement of N300 million to Micro, Small and Medium Enterprises (MSME) across the 18 Local Government Areas in the State.
Osarodion Ogie, Secretary to the Edo State Government, signed the MoU on behalf of the State Government while Gloria Bako, the Executive Director, Corporate Services, signed for LAPO Microfinance Bank.
The loan under the Edo State MSME Funds would be implemented by Edo State Skills Development Agency (Edojobs).
Speaking at the ceremony, Ogie noted that micro finance schemes, all over the world, are the engine room of any economy.
Ogie, who commended the Board of Edo MSME Funds, the management of Edojobs and LAPO Microfinance Bank, appealed to all beneficiaries to make use of the loan facilities as “it’s not a grant, but a revolving loan that must be paid back.”
Earlier, Peter Obaseki, the Chairman of the Advisory Board MSME Fund, who commended the Government for its sustained support for small businesses in the State, noted that the mandate of the Board was for economic empowerment of small businesses.
Obaseki, who said the loan was part of the social transfer scheme to empower residents in the State, added that it must not be an urban phenomenon but to each political wards and units of each of the 18 Local Government Areas of the State.
He said loan which has concessionary interest of 9% is devoid of gender bias, adding that 60% of the funds are for females, 40% for males while a provision of 10% being set aside for Peoples Living with Disabilities.
Obaseki explained that the loan disbursement was distributed in the ratio of 50% to Edo South; 27.5% to Edo North; and 22.5% to Edo Central, respectively.
Obaseki said the MoU with LAPO Mfb made it the third financial partners the State Government would be signing in collaborating with Microfinance Bank to disburse to MSMEs in the State.
He added that LAPO Mfb was brought in to broaden the reach of the disbursement of the fund as well as monitoring, evaluation of beneficiaries and collection of loan repayment.
He noted that the State Government had previously disbursed loan to 1,631 persons through the Bank of Industry and TrustFund Microfinance Bank.
Bako also commended the State Government’s commitment to youth development, reassuring sustained partnership with the Government.
“We are humble by this great task the Edo State Government has given to us, and it is an indication that the government is really concerns about the people that they govern.
“It also showed that the government is concerned not only about empowering business owners but doing a lot for the development of youths in terms of skill acquisitions.
“We want to thank the state government for the confidence reposed in our organization for the disbursement of loans to MSME”, she added.
She, however, appealed to would-be beneficiaries to make good use of the loan for the betterment of their businesses.
