By Precious Akutamadu
The Bank of Industry (BOI) has conducted a sensitisation workshop for Micro, Small, and Medium Enterprises (MSMEs) in Rivers State.
The sensitisation was aimed at facilitating their access to the Federal Government’s N75 billion Intervention Fund available nationwide.Mr Pacqueens Irabor, Engineer, BOI’s Divisional Head for MSME South-South, disclosed this during the workshop held in Port Harcourt on Tuesday.
The event was jointly organised by the Port Harcourt Chambers of Commerce and Industry and Mines and Agriculture (PHACCIMA) in collaboration with the BOI.
Irabor explained that the workshop was designed to educate MSMEs on the application process for the N75 billion Federal Government Loan Intervention Fund.
Additionally, it covered the N3.7 billion Rural Area Programme on Investment for Development (RAPID), a separate initiative created by BOI specifically for SMEs.
He clarified that the N75 billion Federal Government Intervention Fund was a nationwide programme targeting businesses across all sectors and geographical locations.
“This has the interest rate of nine per cent with a three-month moratorium on principal and interest repayment,” he said.
He said that the aim of the Federal Government MSMEs empowerment initiative in rural areas was to expand their businesses, create wealth, and jobs, to reduce poverty rand improve security.
Irabor also said that Rivers Small and Medium Enterprises (SMEs) in the rural areas had yet to access the RAPID fund which N100 million was allocated to the state from the N3.7 billion made available by the bank of industry.
He said that up to N10 million fund was available for each MSMEs in rural areas with the interest rate of five per cent with a three-month moratorium on principal and interest repayment.
Irabor said that the loan has a repayment of three-year tenure with option for three-month extension on principal repayment.
“This has a grant component of 40 percent grant which is N4 million on a N10 million loan, upon successful repayment and demonstration of capacity,” he said.
Irabor stated that the documentation has minimal requirements with no application or appraisal fees, but the MSMEs would provide their valid Identity cards, their Bank Verification Numbers(BVN), their Corporate Affairs documents of their registered companies, bank account statements, guarantors, among others
He urged MSMEs business operators to take advantage of these funds for economic growth and development.
Mrs Chinyere Nwoga, the President of PHACCIMA, said that the ministry partnered with the BOI to facilitate access to affordable funding for Small Medium Enterprises(SMEs)in Rivers in line with its mandate to create enabling environment for businesses to thrive.
Nwoga said that the partnership with BOI was aimed at achieving this goal by providing SMEs with access to cheap funding and capacity-building support.
“We have partnered with Bank of Industry to help the organized private sector, small businesses, access cheap funding from reliable sources.
She said that the programme was designed to demystify the process of accessing loans from BOI and to provide SMEs with the necessary guidance and support to qualify for funding.
PHACCIMA President advocated for BOI to follow-up and monitor to ensure that businesses used the loans effectively and sustainably.
She also emphasised the importance of capacity building and access to information for SMEs to provide businesses with the necessary skills and knowledge to manage their finances effectively and grow their businesses sustainably.
She encouraged SME business operators to join the chamber to access different benefits, including access to training, capacity building, and networking opportunities.
Mr Emeka Ezekwe, the Chairman of the professional Services and consultancy Trade Group of PHACCIMA, noted that the partnership with BOI was a step in the right direction.
Ezekwe encouraged the SME operators to have a positive of mindset about accessing BOI intervention loans, noting that the fundings are loan, not grant, and that repayment are expected.
“When you pay back successfully, you get 40 percent of it back, it gives you some form of discipline to do business sustainably,”he said.
He mentioned that the organised private sector was committed to working with government agencies to support MSMEs.
“We are not leaving it for government alone; we are working together to stimulate economic activity and create jobs,” he explained.
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