Edo, BOI launch N2bn fund for over 50,000 MSMEs

The Edo government and the Bank of Industry (BOI) have unveiled a micro small and medium enterprise (MSME) development fund worth N2bn to support entrepreneurs in the state.

The fund was launched during a citizens’ engagement session organised by the Edo state Skills Development Agency, EdoJobs, held at the government house, in Benin City.

Speaking at the event, Godwin Obaseki, governor of Edo, said the initial amount is N2 billion, with the state government providing N1 billion, while BOI provided the other N1 billion, making it N2 billion, with an attractive interest rate.

“In addition, we have a N165 million fund, as part of the first tranche from the Edo State Government. It will be made available to small businesses, which are currently domiciled in our production hub, to support and encourage them to grow their businesses,” Obaseki said.

“BOI has the capacity and resources to support this kind of programme. From this N2 billion fund, we estimate that we can impact as many as 50,000 businesses in Edo State. We have other facilities with other institutions like the Central Bank of Nigeria (CBN). This is a start-up fund, as we expect it to continue to grow: If you start with N50,000, now and when you do well tomorrow in your business, you will need N200,000.

“Borrowing is part of business, provided you continue to grow.”

Obaseki assured that despite the COVID-19 pandemic, his administration remains committed to improving the livelihoods of the people and creating opportunities for the youths to thrive.

On his part, Olukayode Pitan, managing director/chief executive officer, BOI, said that in a quest to grow and develop MSME businesses in the country, the BOI has resolved to continue to collaborate with existing enterprises, as well as reputable local and international partners.

“This MSME fund is aimed at providing business loans to enterprises located within the state, while the second fund is the N165m Edo Production Hub Fund, financed by the Edo State Government. The Edo Production Hub Fund is managed by the BOI and is to support businesses located within the state-owned production hub,” he said.

The governor and his team, as well as his guests were was also taken on a guided tour of the Edo Production Hub. They also commissioned the new Bank of Industry Building in Benin City, the Edo state capital.