Abia’s N1bn interest-free loan scheme to empower 10,000 local entrepreneurs

Business a.m.

Governor Alex Otti of Abia State has launched a N1 billion interest-free revolving loan to empower 10,000 nano and small scale business owners across the 184 wards in the 17 local government areas of the state.

At the launch in Umuahia, the state capital, the governor explained that the Abia State Cooperative Support Scheme represents a significant milestone in the state’s commitment to supporting the growth and development of nano, micro, and small-scale entrepreneurs by leveraging the resources and initiatives of the public sector.

He stated further: “Through this scheme, the state government will reach a minimum of 50 different entrepreneurs in every ward in the state, offering them the financial support they need to grow their businesses, earn money to support their families, and contribute even more to the economic growth of the communities where they live.

“The Abia State Cooperative Support Scheme has been set up to simultaneously address the financial difficulties owners of small-scale businesses in the rural and urban communities often face; and also send a clear message to everyone that the only way to draw the attention, and support of the government is by engaging in productive ventures.”

The governor expressed his delight at the high proportion of female and young entrepreneurs among the beneficiaries of the scheme’s first batch, stating that it was a testament to their industrious nature and their ability to accomplish remarkable feats with minimal resources.

According to Otti, the beneficiaries chosen for the first batch of the scheme were petty traders, farmers, and artisans who had been labouring for years without the kind of structured support that their counterparts in other parts of the world often enjoy.

Otti also noted that the scheme is just the beginning of the government’s commitment to small businesses, as he outlined plans to reach out to a larger number of businesses over the next 36 months.

The governor assured the people that the government’s commitment to small businesses goes beyond just providing funds, as he outlined the measures in place to ensure the effective utilisation of the loan and to monitor its impact in the communities through periodic reviews and assessments.

“The government is proposing to build a unique data-driven economic development model around this initiative so every feedback we get from the stakeholders shall be very helpful,” he added.

Governor Otti also affirmed that, once the government sees a significant increase in business awareness and activity among the grassroots communities, it will forge partnerships with international development institutions and agencies to expand the pool of funds available for borrowing.

The goal of this partnership, he explained, is to reach a much broader segment of the population, with the ultimate aim of providing opportunities for about one million people to benefit from the loan scheme.