The Abia State government has recently announced the allocation of ₦1 billion for an interest-free revolving loan initiative, aimed at supporting 9,200 beneficiaries across its 184 wards under a cooperative scheme. This development, highlighted by Commissioner for Information and Culture Okey Kanu during a media briefing on 11/07/2024, was described as a fulfilment of one of the major campaign promises of Governor Alex Otti.
Key Points of the Scheme:
- Beneficiaries: 9,200 recipients from all 184 wards in the state.
- Purpose: To support nano and micro business operators in Abia State, providing them with financial assistance to overcome economic challenges.
- Nature of the Loan: Interest-free, revolving loan to ensure sustainability and continuous support for more beneficiaries over time.
Commissioner Kanu further described the scheme as both a palliative measure and an empowerment program designed to alleviate the economic difficulties faced by small business operators in Nigeria. He emphasized the potential short-, medium-, and long-term positive impacts on the state’s economy, expecting a significant boost to local businesses.
During the briefing, Finance Commissioner Mike Akpara also addressed and debunked viral media reports claiming he receives N10 million monthly from the government’s coffers, categorically denying these allegations.
The Abia State government’s allocation of ₦1 billion for an interest-free revolving loan underscores its commitment to supporting small businesses and improving the state’s economy. This initiative is expected to provide much-needed relief and empowerment to many small business operators across the state, fostering economic growth and stability.
At Biz Afric, we commend this proactive approach by the Abia State government, reminiscent of the Lagos State government’s ₦1 billion seed fund allocated to the Lagos State Science, Research, and Innovation Council (LASRIC) aimed at boosting startups and innovation. Both initiatives reflect a growing recognition of the critical role small and medium-sized enterprises (SMEs) play in driving economic development and innovation.
We encourage other states to follow suit and implement similar support schemes to bolster their local economies. Providing financial assistance, particularly interest-free loans, can significantly empower small business operators, helping them overcome economic challenges and contributing to overall economic resilience.