Why I launched N300m constituency revolving loan- Abiru

Senator representing Lagos East Senatorial District in the National Assembly, Tokunbo Abiru, has said the launching of N300million Constituency Intervention Revolving Loan for Micro, Small and Medium Enterprises (MSMEs) was to bring succour to numerous small businesses in the senatorial district.

Abiru made this known in Lagos on Thursday at the official launching of the N300million Lagos East Constituency Revolving Loan of 6% per annum interest rate for MSME.

The Senator noted that the loan scheme would go a long way in reducing unemployment and eradicating poverty, saying that its outcomes were critical in ensuring economic progress, social harmony and social stability.

He added that access to finance was one of major challenges facing small businesses in the country, adding that MSMEs account for about 50% of Nigeria’s Gross Domestic Product (GDP) and 80% of employment.

Abiru said that for the sustenance of the scheme, he has developed a risk management framework to make it an enduring and revolving facility that would impact more people.

“Target beneficiaries are micro and small businesses in the district and duly registered with the Corporate Affairs Commission (CAC). Applicants must provide a recent tax clearance certificate, LASRRA ID, Bank Accoung Details, BVN, NIN, evidence of training with a recognised enterprise development centre, ATM card (Valid for the next 12 months).

“Already we have over 1,000 applicants and my appeal to our constituents is to judiciously make use of this fund and ensure prompt and credible repayment of the amount borrowed so that others can benefit. Our hope and belief is that the judicious use will encourage our partners to make even more contributions in order to grow the fund for the benefit of a greater number of our constituents,”Abiru said

The Senator said that he aspired to grow the fund from N300millio to N1billion in the next 3years, adding that the loan scheme was only one of the many interventions that he had undertaken for the benefit of his constituents and Lagos at large since his election into the Senate about 20 months ago.

Earlier, Chairman of the occasion, Mr Wale Edun, said that the scheme targets at helping small busines owners in growing their businesses so that poverty could be reduced in the society.

Edun commended the Bank of Industry (BOI), SMEDAN and Lagos State Employment Trust Fund (LSETF) for their partnership with the Senator, saying that such collaboration would help in enhancing economic growth in the district and state at large.

Chief Executive Officer of Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, said that Abiru had shown that the involvement of technocrats in the political space was fruitful, adding that it would be neccessary for more technocrats to get involve in the political process.

Yusuf commended the partnering agencies in the scheme, urging the constituents to support the idea.

The launching was attended by politicians including members of the Governance Advisory Council (GAC), Mr Gboyega Soyannwo, Deputy Chief Of Staff to Governor Babajide Sanwo-Olu, Princess Aderemi Adebowale, Special Adviser On Civic Engagement to Lagos Governor, Mr Olawale Fasanya, DG SMEDAN, Mr Kayode Pitan, MD Bank Of Industry (BOI) and traditional rulers.