SMEDAN secures N5bn loan, sets sights on 10,000 SMEs
Charles Odii, the Director General of Small and Medium Enterprises Development Agency of Nigeria, highlighted on Wednesday the challenges faced by small enterprises in accessing government intervention programs due to poor information dissemination.
During the signing ceremony at the agency headquarters in Abuja, Odii disclosed the agency’s achievement in securing a N5 billion loan portfolio, aiming to support over 10,000 Small and Medium Enterprises in Nigeria.
Emphasizing the significance of informing the right businesses about available funds, Odii stressed the importance of addressing information dissemination barriers to ensure wider access to finance.
Pointing to a specific case where a significant amount of funds remained unutilized in a bank, Odii expressed concern that only six individuals were able to access the money, raising questions about the effectiveness of the information distribution by the agency at that time.
He further outlined the agency’s plan to provide easier access to finance, acknowledging the scarcity and expense of finances in the region. The strategic partnership with Sterling Bank is expected to enable SMEs to access loans ranging from N250,000 to N2.5 million at a single interest rate, with the application process set to commence in two weeks.
Expressing Sterling Bank’s support for the initiative, Managing Director, Abubakar Suleiman, mentioned that no collateral would be required to access the loan, and a repayment window of two years would be provided. He also highlighted the development of a technological platform called ‘Banker’ designed to ease the process of accessing financing for small businesses and enable better organization and repayment management.
“Banker” aims to offer a streamlined approach to accessing funding, providing guidance for businesses even if they do not qualify initially, enabling them to understand the reasons and make improvements to their practices for potential future access to funding.
