Abia State, under the leadership of Governor Alex Otti, has announced the disbursement of a N1 billion Interest-Free Revolving Loan aimed at empowering 10,000 Nano and Small Scale Entrepreneurs across the state.
This initiative, revealed on Friday, is part of Governor Otti’s campaign promises to provide essential financial support to entrepreneurs, fostering business growth and economic development.
“In fulfillment of our campaign promises, we are pleased to announce the official disbursement of a N1,000,000,000 Interest-Free Revolving Loan. The initiative aims to empower 10,000 Nano and Small Scale Entrepreneurs across the 184 wards in the 17 Local Government Areas (LGAs) of Abia State,” said Governor Otti in a statement.
Tekedia Mini-MBA edition 15 (Sept 9 – Dec 7, 2024) has started registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
Governor Otti emphasized the importance of this initiative in addressing the financial difficulties faced by small-scale business owners in both rural and urban communities.
“Our focus is on enhancing business awareness at the grassroots level, recognizing that this approach is crucial for combating endemic poverty and addressing our worrisome unemployment rate,” he added.
The Abia State Cooperative Support Scheme, the framework through which the loans will be disbursed, aims to support a diverse group of beneficiaries.
“The selected beneficiaries for this batch include farmers, petty traders, and artisans from various parts of the state,” the governor explained.
“Our model emphasizes productivity, job creation, and poverty reduction. Beyond the current beneficiaries, our target is to directly impact approximately 100,000 businesses over the next thirty-six months. We remain optimistic that today’s recipients will diligently repay their loans, enabling others to benefit,” Otti added.
He also hinted at potential future collaborations with international partners and donor agencies to expand the scheme.
To ensure the effective implementation and sustainability of the scheme, the state has adopted a community-based approach.
“We have strategically leveraged community-based cooperative societies for loan disbursement. Members must understand the consequences of deliberate loan defaults; a depleted resource pool affects the chances of other members benefiting,” the governor stressed.
Governor Otti highlighted that this initiative is part of a broader strategic development agenda aimed at improving the welfare of Abia State citizens.
“Our administration rejects a scenario where a select few monopolize community resources while the majority wallow in poverty. We are committed to improving the welfare of our citizens at the grassroots level,” he said.
The governor extended special thanks to stakeholders and Hon. Ishmael Onuoha, the Coordinator of the scheme and Senior Special Assistant to the Governor on Cooperative Societies, for their hard work in ensuring the success of the initiative.
Addressing the State’s Underdevelopment
Abia State has faced significant challenges over the years, primarily due to underdevelopment and mismanagement by previous governments. The lack of adequate infrastructure, poor economic policies, and corruption have left many communities in the state impoverished.
Since taking office over a year ago, Otti’s administration has been proactive in tackling these issues. Besides the revolving loan scheme, the government has initiated various other projects aimed at revitalizing the state’s economy. These include infrastructural developments, healthcare improvements, and educational reforms.
One notable project is the ongoing road rehabilitation across key urban and rural areas to improve connectivity and facilitate commerce. The state government has also embarked on modernizing healthcare facilities to ensure that residents have access to quality medical services.
In education, the government is making efforts to renovate dilapidated schools and provide learning materials to enhance the quality of education.