Business owners in Nigeria to get N10m collateral free loans – V.P Osinbajo

Prof. Yemi Osinbajo, Nigeria’s Acting President, has said the Federal Government is working towards providing Micro, small and Medium Enterprises (MSME) a credit facility N2 million to N10 million without collateral.

He made the disclosure at the maiden edition of the MSMEs Award 2018 held at the State House Banquet Hall, Abuja.

The Acting President, disclosed that in addition to the one-stop-shop launched in some states to carry the MSME clinics intervention, the Federal Government would soon launch its shared facilities for MSMEs initiative.

Osinbajo said the initiative would be in partnership with the Bank of Industry (BOI), Federal Inland Revenue Service (FIRS), Nigerian Export Promotion Council (NEPC).

“This initiatives will provide MSME access to fully equipped cluster style facilities for which they can pay an affordable fee to operate”, NAN quoted him as saying.

“These facilities would have been pre-certified by relevant agencies like NAFDAC, Standards Organisation of Nigeria (SON), Industrial Training Fund (ITF) and NEPC thereby removing the layers of bureaucracy that in the past held back many aspiring entrepreneurs.

“In the shared facilities, you already have the requisite licences that regulate your operation. So, using the facilities means that you will not go through all the regulatory bureaucracies.

“We will also partner with the Central Bank of Nigeria (CBN) and commercial banks to launch a credit facility that will make available to MSME loans from N2m to N10m with a period of five to seven years with little or no collateral.

“The interest rate will be five percent. All that you need is to provide the committee with a bankable business proposal and guarantor,” he stated.

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