Experts commend government’s N75bn loan for MSMEs
CHIGOZIE AMADI
Experts have commended the Federal Government’s decision to provide a N75 billion loan for Micro, Small, and Medium Enterprises (MSMEs) as a promising step to support and revitalise the sector.
They believe this financial boost could help MSMEs navigate challenging economic conditions and contribute to economic growth.
They said this in separate interviews with the News Agency of Nigeria (NAN) on Wednesday in Lagos.
Prof. Sherifdeen Tella, Head of Economics Department at Olabisi Onabanjo University (OOU) in Ogun, while highlighting the positive potential of the initiative, described the loan disbursement as a timely intervention.
“The MSME sector is one of the worst hit by the current challenging business environment due to governmental policies.
“These loans could help revive many small businesses during this period of rising costs,” he said.
Tella emphasised the importance of prioritising MSMEs given their critical role in the economy, suggesting increased budgetary allocation to the sector as it drives growth and creates employment.
Similarly, Mr Nerus Ekezie, former Director of the National Association of Small and Medium Enterprises (NASME), also commended the government for this gesture.
He, however, said that previous government support often failed to significantly alleviate the sector’s challenges due to its ad hoc nature.
“This intervention, like previous ones, may fall short of fully meeting MSME needs because of its design,” Ekezie said, recommending sectoral categorisation to ensure the loans are effectively targeted.
“Sectoral categorisation would underscore the diverse needs within the MSME sector. Some businesses require infrastructure, while others need funding for equipment,” he explained.
Mr Godwin Anono, President of the Progressive Shareholders Association of Nigeria (PSAN), also welcomed the government’s support, advising that the conditions for accessing the loans should not be overly stringent to ensure MSMEs can benefit.
“These funds could help revitalize businesses, especially amid the current economic downturn,” Anono noted.
NAN reports that the Federal Government has begun disbursing the N75 billion, single-digit interest loan to MSMEs through the Bank of Industry (BoI).
Mr Tola Adekunle-Johnson, the Senior Special Assistant to the President on Job Creation and MSMEs, made this known in Abuja on Nov. 5 at a nationwide town hall meeting to sensitise MSMEs to the Presidential Grant and Loan Scheme.
