Lagos East 6% Per Annum Constituency Revolving Loan For MSMEs By Senator Mukhail Adetokunbo Abiru’s Vision For Business Enterprises Sustainability.

By Araba, Olawale Enifenilanfe

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Yesterday, Thursday; September  15th, 2022: The Distinguished Senator, Wahkil Adetokunbo Abiru, FCA launched a Lagos East Senatorial Six Percent Per Annum Interest Constituency Revolving Loan For the “Ministry of Micro, Small & Medium Enterprises (MSME), starting with the minimum of a Hundred Thousand naira (#100,000) to the maximum of One Million naira (#1,000000) each.

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The event took place at the Funplex Event Centre, 20, CMD Road, Ikosi-Ketu, Lagos to embrace MSME business owners through a sustainable financial partnership with Bank Of Industry, Lagos State Employment Trust Fund (LSETF), and Small & Medium Enterprises Development Agency Of Nigeria (SMEDAN).

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The program effectively started at noon with a series of dignitaries who were presented by Barrister Jimoh Hamzat, starting from The Governor’s Advisory Council (GAC) Member; Prince Abiodun Ogunleye JP, Asiwaju Ruben Olorunfunmi Bashorun, and Cardinal James Odunmbaku. The First Citizen of Lagos State, His Excellency Governor, Mr. Babajide Olushola Sanwoolu duly represented by The Lagos State Government Chief Of Staff, Mr. Gboyega Shoyanwo, The Lagos State APC Party Secretary, Hon. Sunmi Olarewaju Odesanya, The Lagos East Senatorial APC Woman Leader, Mrs. Wonuola Oshinowo, The Chairman Of The Day, Hon. Olawale Edun, Welcome Address by Deji Abisola, Opening Address by Executive Secretary LSETF, Goodwill Messages by The Managing Director of The Bank Of Industry, Director General, SMEDAN, and Dr. Muda Yusuf; The Keynote Speech was made by Senator Mukhail Adetokunbo Abiru, FCA while Presentation of some beneficiaries took place before the vote of Thanks by Otunba Dr. Saheed O. Ibikunle 

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In attendance was The Executive Chairman of Ikorodu Local Government, Hon. Wasiu Ayodeji Adesina Ikorodu central APC Party Chairman, Hon. Waheed Oladimeji Animashaun, Igbogbo Bayeku LCDA, Party Chairman, including some other party Chairmen under the Lagos East Senatorial District, The Former Sole Administrator Of The Ikorodu Local Government, and The LAHA APC Candidate, Hon. Ogunleye Gbolahan Adetokunbo (OGA), Hon. Jino Olorunwa Oshodi including all the Council Of Obas, Chiefs, and the Stakeholders of the Lagos East senatorial district; Oba Kabiru Adewale Shotobi duly represented by a Chief; The Adeboruwa Of Igbogbo, Oba Semiu Orimadegun; The Obateru Of Egbin, Ijede, Oba Adeoriyomi Oluwasesan Abdul-Akeem Oyebo (ARPA), Ademoyebo 111; The Sekumade of Ipakodo, HRM Oba (Engr.) Bashiru Aremu Shotonwa; Oba

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The Executive Secretary, Lagos State Employment Trust Fund (LSETF) in his opening address, announced, that MSMEs in Nigeria are very important and very integral to the growth of the Nigeria economy, as they contribute 50% of our GDP, and 80% of employment in the country, we stand a chance of changing this country, if well supported and have an enabling environment, to drive, especially access for cheap ones, for business growth and expansion. We hereby discovered, that because of the unstructured of the MSME, they were unable to get a commercial bank loan to expand their businesses, which result in loan shape that lean to them at the exorbitant rate of interest, ranging from 6% per month to 30% per month, that is about 72% per annum and 360% per annum, which is triple highly unsustainable.

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The Distinguished Senator in partnership with faith foundation and standard Chartered Foundation organize a one-day MSME clinic/workshop for over 1000 MSMEs drawn across the 98 wards in the 16 LGA & LCDA in the Lagos east senatorial district, The training attracted executive leadership of business relative regulation agencies and partners, such as Bank Of Industry, SMEDAN, CAC, Inland Revenue, NAFDAC, Standard Organisation of Nigeria and Lagos State Employment Trust Fund (LSETF) among others who trained the MSMEs on various areas of business and also answer some of the practical questions during the one on one section. It was a capacity building building clinic indeed. In addressing the dept of knowledge which is one of the major reason why msme fail. A knowledge far, which contains seven valuable books, which contains areas like, financial management, Human capital, Legal, Strategy, Marketing and Communication, Digital Technology, and Tax management, which are authored by the reputable cooperations, such as deluis, KPMG, Veraki among others were giving free of charge by the distinguished senator, over 1000 participant at that event. The participant also received enterprise certificate after the training. At the said event, The distinguished senator promised that he will do all within his power to setup a constituency revolving loan at single digit, that is 6% in a year as interest where he commited instantly to the sum of a hundred million naira only(#100,000000), in which the managing director of the bank of industry in his speech also committed the same amount of a (#100, 000000), we left the event with two hundred alone size as 6% per annum.

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In fulfillment of this promise, we have work diligently with all stakeholders and today, we have a starting loan seize of Three Hundren Million Naira (#300,000000). A hundred million naira (#100,000000) from the Bank Of Industry, Hundren million naira (#100,000000) from Small & Medium Enterprises Development Agency Of Nigeria (SMEDAN), and a Hundred Million from The Lagos State Employment Trust Fund (LSETF) who are the 3rd managers, we except this funds to grow as we move along, and the beneficiaries of the load to pays back as when due. 

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The loan are in four (4) categories and they are very easy to access which are as follows:👇

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1.  Nano Loans: This are load between ten thousand naira (#10,000) and a hundred thousand naira (#100,000) from SMEDAN & LSETF who are the 3rd managers. We expect the funds to grow as we move along, and beneficiaries of the loan repays as when due. It can be repay back up to 12 months, if it is an ascent loan, you only pay 5% of the amount and all you need as security, is a letter of recommendation from reputable stakeholder, or level 16 civil servant worker.

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2. Micro Enterprise startup loan: For this, you can borrow from fifty thousand naira (#50,000) up to two hundred and fifty thousand naira (#250,000) loan. It's available for individuals, who have not yet have a business registered, but have gone through reputable and a recognise training centre. You can repay back up to 12 month, and save 5% contribution for access loan, just your minimal ID, and No collateral.

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3. Macro Enterprise Loan: This is from five hundred thousand naira (#500,000), this must be an existing businesses that has been on for a minimum of one year. This category of businesses are not well structured, but they are as well recognize not recognized by CAC documentation for their business. They can borrow up to 12 mount, 5% contribution as also, minimal ID and no collateral. This person much have a personal account or business account to show that he has been operating a good business.

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4. Small & Medium Enterprises Loan: This loan is between five hundred thousand naira (#500,000) up to One million naira (#1,000,000), but existing businesses which has been in sustainably functioning for more that a year. You must have registered with CAC either at a business name, or a limited liability. Their loan can be repay over 18 month. Minimal ID, no collateral, needed a bank statement to show, that the business owner is running a very good business. This loan can be accessible online via tokunboabiru.org for loan application.

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As for any interested person can also visit MSME loan offices, across the Lagos east senatorial district. According to Mr. Gboyega Shoyanwo, he said, interested qualified person can visit liason offices:👇

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For Ikorodu; Ikorodu Local Government, Lagos State Employment Trust Fund (LSETF) office.

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For Epe; Epe Local Government, itamarun, Epe, Lagos.

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As for kosofe; Kosofe Local Government secretariate, on Ogudu road, Ojota, Lagos.

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It's also in Shomolu Local Government, Shomolu, Lagos.

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Lekki office: Ibeju Lekki Local Government area, Igando Oloja, Ibeju Lekki, Lagos, Nigeria.

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The loan is continue for a long time, and that is the more reason why, it is compostary for the beneficiaries to ensure they pay back the loan as when due.

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ADDRESS OF SENATOR MUHAIL ADETOKUNBO ABIRU AT THE FORMAL UNVEILING OF N300 MILLION CONSTITUENCY INTERVENTION REVOLVING LOAN OF INTEREST RATE OF 6% PER ANNUM FOR MICRO, SMALL AND MEDIUM ENTERPRISES AND ENTERPRENEURS IN LAGOS EAST SENATORIAL DISTRICT HELD ON 15TH SEPTEMBER

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In is address, he said, He is delighted to welcome the Governor of Lagos State, Royal Fathers, Leaders of the All Progressives Congress (APC) party, Stakeholders in every the Senatorial district, Members of the business community, the very distinguished partners, distinguished ladies and gentlemen. According to him, he said, he feel gratified by everyone presence in the event to witness the unveiling of their Three hundred million Naira Micro, Small and Medium Enterprises (MSME) Constituency Intervention Revolving loan of 6% per annum for entrepreneurs and youths in the Lagos East Senatorial District.

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This is in furtherance of his commitment to the improvement of the economic lives and empowerment of the people and the capacity building forum we had in the same place last year for over 1,000 MSMEs. It is his conviction as well, that this economic empowerment would go a long way in reducing unemployment and eradicating poverty. These outcomes are critical in ensuring economic progress, social harmony and social stability. 

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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 the Gross Domestic Product and over 80% of employment and  have footprints across all sectors of Nigeria economy. Therefore, they offer good channels for the realization of development objectives of jobs creation, economic inclusion and poverty reduction.

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Access to finance has been identified by various studies as one of the biggest challenges faced by small businesses in 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% to 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.

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This Constituency Intervention Revolving Loan for MSMEs will go a long way in bringing succor to the small businesses in the Lagos East Senatorial District. To ensure the sustainability of the scheme an enduring and revolving facility that will impact many more people beyond the first round of beneficiaries. The key features of this intervention fund are as follows:👇

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1. The fund size is three million naira (#300,000,000)

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2. Highly concessional at 6% (All-in) single digit rate per annum loan tenor, between 3 to 18 months.

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3. Limit per beneficiaries is One Hundred thousand naira (#100,000) to a million naira (#1,000,000).

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Target beneficiaries are micro and small businesses in Lagos East Senatorial District and duly registered with the Corporate Affairs Commission (CAC).

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Applicants must provide a recent tax clearance certificate, LASRRA ID, Bank Account Details, BVN, NIN, evidence of training with a recognized enterprise development center, ATM card (valid for the next 12 months). He said, at this stage, he therefore acknowledge the cooperation and support of the Bank Of Industry (BOI), the Lagos State Employment Trust Fund (LSETF) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) for their partnership and contribution to this intervention. Their support has broadened the scope of the scheme, and their respective contribution of hundred million naira (#100,000,000) each aggregated to fund size of the Three hundred million naira (#300,000,000).

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He said, over 1,000 applicants has been documented and his appeal to the Lagos East Constituents is to judiciously make use of this fund and ensure prompt and credible repayment of the amount borrowed, so that others can benefit. The Distinguished Senator, also said the organisation hope and believe is that the judicious use, will be encouraged their partners to make even more contributions in order to grow the fund for the benefit of a greater number of our constituents. The organization vision is to grow from #300 million to #1 billion in the next 3-5 years.

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The Distinguished Senator, Wakhil Adetokunbo Abiru, legislating for Lagos East Senatorial district at the federal government level said, in the spirit of accountability, he will like to highlight some of the other initiatives that he has undertaken to impact the lives of good people of his constituency.

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In the last twenty months ago that he has held the people’s mandate, he started all he has prioritized his focus and responsibilities on, as three (3) pillars:👇

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1. Legislative role

2. Empowerment 

3. Endowment 

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In conclusion he was able to place on a record by profound appreciation to all the leaders of the party at various levels for their unwavering support and cooperation. As the campaign period draws closer, I continue to count on your support for a mass mobilization of our supporters to ensure victory for our political party at all level of the elections next year and finally urges everyone to vote for all APC aspirants for progressives and victorious achievement. God bless you all, God bless our APC Party, God bless Nigeria he prayed.

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LaRoyal CommunityNews

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 ©️ 2022 edition: 

“Senator Mukhail Adetokunbo Abiru, FCA Chairman, Senate Committee on Industries, Federal Republic of Nigeria.”