Edo Government, sign MoU with LAPO MfB To Disburse NGN 300m Loan To MSME

Edo State Government signed a Memorandum of Understanding (MoU) on Tuesday with LAPO  Microfinance Bank for the disbursement of N300 million to Micro Small and Medium Enterprises (MSME) across the state.

The loan according to the SSG, will be implemented by Edo State Skill Development Agency (Edojobs).

The News Agency of Nigeria (NAN) reports that the Secretary to the State Government (SSG), Osarodion Ogie, signed the MoU on behalf of the State government while Gloria Bako, Executive Director, Corporate Services signed for LAPO MfB.

Commending the board of Edo MSME funds, the management of Edojob, and LAPO Microfinance Bank, Ogie said that microfinance schemes all over the world were the engine room of any economy, he appealed to all beneficiaries to make use of the loan.

He added that it was not a grant but a revolving loan that must be paid back.

Peter Obaseki the chairman of the Advisory Board MSME Fund, had earlier commended the government for its sustained support for small businesses in the State.

He emphasized that the mandate of the board was for the economic empowerment of small businesses.

Obaseki further explained that the loan was part of the social transfer scheme to empower small businesses in each political ward across the 18 Local Government Areas of the state. He added that the 9 percent interest loan was without gender bias.

He also explained that 60 percent of the loans were allocated to females, 40 percent to males and a provision of 10 percent had been set aside for People Living with Disabilities.

Obaseki, stated that the loan would be distributed in the ratio of 50 percent to Edo South, 27.5 percent to Edo North, and 22.5 percent to Edo Central Senatorial Districts respectively.

He disclosed that the MoU with LAPO  MfB made it the third financial partner the State Government was partnering with to disburse to MSME in the state. He added that LAPO was brought in to widen the reach of the disbursement of the fund as well as monitor the evaluation of beneficiaries and collection of loan repayment.

He said the state has, however, previously disbursed loans to 1,631 persons through the Bank of Industry and TrusFund Microfinance Bank.

Gloria Bako, on her part commended commended the state government's commitment to youth development and reassured the bank's unwavering partnership with the government.

"We are humbled by this great task Edo State Government has given to us, and it is an indication that the government is really concerned about the people that they govern.

"It also shows 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 disbursement of loans to MSME".

She also appealed to would-be beneficiaries to make good use of the loan for he betterment of their businesses.