Kunle Adelabu & Mariam Akinloye
The Senator representing the Lagos East Senatorial District in the National Assembly, Sen. Mikhail Adetokunbo Abiru, has said that he initiated the N300million naira Micro, Small and Medium Entreprises (MSME) constituency Intervention Revolving Loan in furtherance of his commitment to improving economic lives and empowering his people.
Abiru, a former bank executive, said that it is his conviction that economic empowerment goes a long way in reducng unemployment and eradicating poverty.
The initiative is in partnership with Bank of Industry (BOI), Lagos State Employment Trust Fund (LSETF) and Small and Medium Enterprises Development of Nigeria (SMEDAN).
The representative of the Governor of Lagos State, Mr Babajide Sanwo- Olu, Sen. Tokunbo Abiru, his wife and othe dignitaries at the unveiling of the N300million Lagos East Constituency Revolving Loan by Sem. Abiru.
According to the Senator, targeted audience who are micro and small businesses can access between N100, 000 and N1, 000, 000.
He explained his intention at the unveiling of Lagos East 6% per annum Constituency Revolving Loan for MSMEs at the Funplex Event Centre, CMD Road, Ikosi – Ketu, Lagos, on Thursday, September 15, 2022.
“Micro, Small and Medium Enterprises (MSMEs) play an important role in the economic development process. This reality is acknowledged globally. They play crucial roles in job creation, income redistribution, mobilization of small savings, technology adaptation, economic inclusion and many more. In Nigeria, the MSMEs account for about 50% of our Gross Domestic Product and over 80% of employment and have footprints across all sectors of our economy”, Sen. Abiru said.
“Therefore, they offer good channels for the realization of development objectives of job creation, economic inclusion and poverty reduction.
“Access to finance has been identified by various studies as one of the biggest challenges faced by small businesses in the Nigerian economy. Many MSMEs, out of desperation, take loans from informal financial markets and finance companies at outrageous interest rates, sometimes as high as between 50% – 120% per annum.
“MSMEs are also subjected to a lot of complex requirements such as loan collaterals, strenuous documentations, and bureaucratic processes which impede access to credit by these small businesses.
Sen. Abiru and wife with chieftains of the Governance Advisory Council (GAC), the highest decision-making body in Lagos at the unveiling ceremony in Lagos on Thursday
“This Constituency Intervention Revolving Loan for MSMEs will go a long way in bringing succor to our numerous small businesses in the Lagos East Senatorial District. To ensure the sustainability of the scheme, we have developed a risk management framework to make the scheme an enduring and revolving facility that will impact many more people beyond the first round of beneficiaries”, he explained.
While revealing that 1000 applicants have successfully registered since the initiative was made public, Abiru appealed to the beneficiaries and those that would still benefit to make good use of the loan and ensure that they pay back.
“Already, we have over 1000 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”, he said.
“Our hope and belief is that the judicious use will encourage our partners to make even more contribution in order to grow the fund for the benefit of a greater number of our constituents. Our aspiration is to grow the fund from 300 million to N1 billion in the next 3-5 years”, Sen. Abiru added.
The Governor of Lagos State , Mr Babajide Olusola Sanwo-Olu, in his remarks at the unveiling, described the initiative by Sen. Abiru has commendable and effective representation.
Sanwo – Olu was represented by his Deputy Chief of Staff, Mr Gboyega Soyonwo.
His Royal Majesties, Oba Akeem Oyebo, the Obateru of Egbin )left), Oba Semiudeen Kasali (middle) and another Royal father at the unveiling ceremony on Thursday
“ I commend my dear brother, distinguished Senator Mukhail Adetokunbo Abiru for keeping faith with his constituents, the good people of Lagos East Senatorial District and the entire people of Lagos State through effective representation at the red chamber and the various empowerment programmes he has initiated including the one being unveiled here today”, Sanwo – Olu said.
“This is an example of the dividends of democracy our people desire and we will not relent in ensuring that the welfare and wellbeing of our people remain our one and only priority”.
Chairman of the occasion, Mr Olawale Edun, an international Finance expert who said he once initiated a loan initiative which failed, commended Abiru for puting in place good measures to make the loan sustainable.
Asiwaju Olorunfunmi Basorun, former Secretsru to the Lagos State Government and chieftain of the GAC (2nd right front row), Prince Abiodun Ogunleye, Deputy Governor and GAC chieftain (2nd left), another chieftain of the GAC 9(left) and other guests at the unveiling.
“I instituted same initiative to tried and assist my people at Ikoyi – Obalende, but it was not as structured and elaborate as this. It didn’t stand the test of time because people didn’t pay back”, the Chairman of the occasion said.
“lf you want something to be sustained, you do it the way that Senator Abiru has done it”, he added.
While stating that the loan is basically free money because of the low interest rate, Edun appealed to beneficiaries to put the loan into good use so as to be able to pay back.
Representative of the Executive Secretary, Lagos State Employment Trust Fund (LSETF), Mrs Tejumola Abisoye who lauded the Senator’s initiative, said that the interest rate bargained for by the Senator is the least that can be gotten anywhere.
She explained the process of accessing the loan while charging beneficiaries to make good use of it.
Olawale Fasanya, Director General, Small and Medium Enterprises Development of Nigeria (SMEDAN) who commended the Senator for his passion about the welfare and of his people, said that the body would put in place a team to monitor and supervise the beneficiaries and offer them advises for good utilization of the fund.
Asiwaju Olorunfunmi Basorun, Chieftain of the Governance Advisory Council (GAC), said that the Senator was born great and he is not in any way surprised that he is giving quality representation and delivering on his mandate.
At the unveiling were royal fathers, state functionaries, party chieftains, captains of industry and residenst of Lagos East Senatorial District.
