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From Aniekan Aniekan, Calabar
The Bank of Industry, BOI in partnership with the Cross River state government, has unveiled a N2 billion matching fund for Micro, Small and Medium Enterprises (MSMEs).
The initiative was unveiled during a townhall session in Calabar, Cross River State where business owners, financial experts and government officials gathered to discuss opportunities for enterprise growth and economic development across the state.
The Director-General and Chief Executive Officer of the Cross River State Microfinance and Enterprise Development Agency (CRSMEDA), Mr. Great Ogban, said the engagement underscored the commitment of Governor Bassey Otu’s administration to expanding access to affordable credit and supporting grassroots economic growth. The state government, he said, is determined to remove barriers that have traditionally limited the growth of small businesses and to create an enabling environment for entrepreneurs to thrive.
Divisional Head, South-South of the BOI, Pacqueens Irabor, explained that the N2 billion facility is designed to provide affordable financing to businesses across key sectors of the economy.
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Irabor disclosed that the loan comes with a repayment tenure of three to five years and a single-digit interest rate of 7.5 per cent, making it one of the most attractive financing opportunities available to MSMEs. He added that the facility is divided into term loans for the acquisition of production equipment and working capital loans for operational expenses, adding that businesses in agriculture, manufacturing, fashion, hospitality and other productive sectors are eligible to apply.
“The fund is intended to support businesses that contribute to economic growth and job creation. It also accommodates the importation of production equipment, although it does not cover finished retail goods,” he stated.
He noted that applicants seeking less than N3 million are required to provide one guarantor, while those applying for loans above N5 million must provide two guarantors, collateral in the form of a Certificate of Occupancy valued at twice the amount requested, and proof that the business is registered as a limited liability company.
Addressing concerns about collateral documentation, the Director of the Land Bank at the Cross River Geographic Information Agency (CRGIA), Yemi Nelson, assured participants that the agency has simplified land documentation processes to facilitate access to credit.
Nelson revealed that Certificates of Occupancy can now be processed within 60 days, a development expected to ease compliance with loan requirements and encourage more entrepreneurs to take advantage of the facility.
