Rivers State Governor Sir Siminalayi Fubara, has formally launched the N4billion matching fund loan scheme that will stimulate business activities and create wealth in the state.
The launching, which took place at the Dr Obi Wali International Conference Centre in Port Harcourt on Friday, May 3, signalled the commencement of the disbursement of the Rivers State Government/Bank of Industry (BOI) Limited N4billion marching fund loan scheme for micro, small and medium-scale businesses in the state.
Governor Fubara said lack of access to credit had continued to aggravate financial exclusion and choke prospects for individuals to realise their economic aspirations for a better life, a situation the new project targets to change.
With the take-off of the new scheme, which is a partnership between Rivers State Government and BOI, Governor Fubara stated that a sure path has been secured to achieve entrepreneurial success while serving as an enabler of economic prosperity in the state.
“Today, we are all here to witness the formal launch and distribution of cheques to 3,066 micro, small, and medium-scale enterprises and 100 companies in the State from all 23 local government areas, including businesses owned by non-indigenes valued at over N3.6billion only.
“We are satisfied with today’s outing and professionalism, believing even more strongly that the potential outcome will be greater to both BOI and the government and good people of Rivers State,” he said.
Governor Fubara explained that as a campaign blueprint, he promised during his electioneering campaigns, to support entrepreneurial development and business growth through access to credit in the form of soft loans.
According to the governor, upon assumption of office, he noticed more closely how most businesses, especially those of small scale, struggled and either died or gasped, in accessing credit that were only offered by banks at neck-breaking interest without success.
He Fubara pointed out that without supporting businesses, growth would be difficult.
Said he: “As a state, we cannot talk about economic growth without stimulating business activities to create wealth and jobs through policies and programmes that will engender greater public access to credit and financial inclusion.
“MSMEs are well-known as critical drivers of inclusive economic growth and development. By empowering our people to cultivate available economic opportunities, access to credit is a powerful tool for achieving financial security.
“We can only keep imaging the economic value that the over 3,000 MSMEs would add to the positive economic dynamics of Rivers State and the local government areas in terms of gross domestic product, increased tax returns, employment creation, income distribution and production of good and services.”
The governor stressed that even if the loan appeared very liberal, it is not given as charity, and insisted that beneficiaries must pay back so that others can also access it to fund their businesses.
He instructed the management of the Rivers State Microfinance Agency (RIMA) to monitor the progress of the beneficiaries in their businesses and ensure a 100 percent recovery of the loans to guarantee the sustainability of the programme.
Governor Fubara noted the gains of the symbiotic economic partnership between the state government and the Bank of Industry, BOI, and the transformed commitment to further strengthen and cultivate that for the benefit of the people of Rivers State.
In his address, the managing director/chief executive officer of Bank of Industry (BOI) Limited, Dr Olasupo Olusi, represented by the executive director, Corporate Services and Commercial, Mr Usen Effiong, said they were particularly interested in ensuring that the collaboration is realised in steering socio-economic growth, creating jobs, checkmating social vices and growing the internally generated revenue, IGR of Rivers State.
“BOI remains committed and a strong pillar of development financing in Nigeria for over 60 years. Our remarkable record and total assets exceed N4trillion, which makes BOI the largest and most successful development finance institution in the nation.
“It will interest us to know that our total investment in Rivers State as at today stands at N55.65billion, which accounts for 55 percent of the total investment in the entire South-South. So, Rivers State alone is taking the chunk of our investment.
“We, as the Bank of Industry Limited, play a major role in supporting Nigerian enterprises by providing financial services, advisory services, and watch businesses grow from Nano to Micro to Small, Medium and getting to large enterprises.
“Our mandate is to create development impact which is in line with the economic blueprint of His Excellency, the Governor of Rivers State, and this cuts across various sectors ranging from agriculture, oil and gas, power and aviation, hospitality. This, we believe will crystalize industrialization and economic sustainability in Rivers State,” he stated.
In his welcome address, the managing director and chief executive officer of Rivers State Microfinance Agency (RIMA), Pastor Jonathan Tobin, said it was exciting that they were given the opportunity to contribute to achieving the dream project of Governor Fubara christened, “Touching Lives, Creating Wealth.”
The MD/CEO described the timing of the launching of the scheme as auspicious, coming when the operating capital of most businesses have been eroded.
He explained that there are grave inflation rate and fluctuation of the foreign exchange regime which, have posed unbearable challenges to most micro businesses.
Pastor Tobin said the interest rate for loan collected under the scheme is a single digit of 7.5 percent per annum, and reckons as the lowest in the country.
He also explained the category of beneficiaries.
“Today, we have four categories of borrowers. Those who are borrowing from N1,000 to N1,000.000. Those who are borrowing from above N1million to N50million are treated by our partners, Bank of Industry.
“If you are borrowing from N100,000 to N450,000, all you need to provide is just your passport photograph, the passport photograph of your guarantor, your NIN, and local government identification.
“For those who are borrowing from N500,000 to N1million, all they need to provide is two passport photographs, their NIN, their means of identification, BVN, a guarantor with a cheque leaf. These categories of borrowers are treated in RIMA,” he added.
Pastor Tobin said further: “Those who are borrowing from above N1million to N10million will be treated in Bank of Industry. All they need is just a proof of registration of their businesses, two guarantors, a valid identification card, and a simple business plan.
“For those who are borrowing N10million to N50million, all they need is a Corporate Affairs Commission Registration, two years’ audited financial record, a Certificate of Occupancy, BVN, tax clearance of the company and or the directors.
“As at today, we have brought on board 3,066 beneficiaries, and they all are requesting for N1.632billion. Interestingly, women borrowers account for 58 percent while the men borrowers account for 42 percent,” he further explained.
Pastor Tobin urged Rivers people interested in forging a good and sustainable business path to approach the agency for support yo enable them contribute to the economic revival and growth of the State.
Highlight of the event was the official launch of the loan scheme and presentation of cheques to some successful beneficiaries from across the 23 LGAs and some small business owners by the State Governor, Sir Siminalayi Fubara.
