Gov. Otti’s N1bn interest-free loan, another boost to Abia economy
By Ogbonnaya Ikokwu
The launching of N1 billion interest-free revolving loan, under the Abia Cooperatives Scheme, is another move by the Abia State Governor, Dr Alex Otti, to save many micro, small and medium enterprises (MSMEs) from closing shop in the face of the current economic difficulties in the country.
Gov. Otti, an astute economist, has once again demonstrated that there is no better way to cushion the effect of the inflation in the country than executing policies and programmes that would support small businesses to survive.
The MSMEs, which constitute a greater percentage of the economy of many modern day nations,
are faced with the challenge of access to loan because of their informal setup and the lack of collateral.
The governor, through the loan scheme, has once again commenced the fulfillment of one of his campaign promises of encouraging MSMEs
to grow in the state.
The State Government said that 10,000 Abia residents, drawn from the 184 wards across the state, would benefit from the first phase of the programme.
The Commissioner for Information and Culture, Prince Okey Kanu, who announced the lunch of the project while briefing journalists in Umuahia on Monday July 8, explained that 50 beneficiaries would be selected from each of the 184 political wards in the state.
Kanu said that the scheme, which is an interventionist programme in form of palliative and empowerment, would help to turn the economic fortunes of the beneficiaries around for the better.
He said: “In fulfilment of one of his campaign promises, His Excellency, Dr Alex Otti will on Thursday, July 11, officially launch the disbursement of interest-free revolving loan to Abians under the Abia state Cooperative Support Scheme.
“This is meant to support small and micro business operators in the state. It is meant to help them in their businesses.
“It will help to ameliorate the difficulties people are experiencing in their businesses as a result of the economic headwinds that are currently affecting the nation’s economy”.
Coming barley two weeks after
a contingent of 300 Abians despatched to CSS Global Farms in Nasarawa State, for a two-week intensive training on agriculture, concluded their training and a promise to give them startup capital by Gov. Otti points to the fact that the Labour Party led-government in Abia State is intentional about teaching people how to fish rather than giving them fish.
There is no doubt that injecting one billion naira into the state economy via the interest free revolving loan would create a major upward push in its economy.
However, the handlers of this noble project must ensure that the funds get to the target beneficiaries and not used for political patronage.
Attention should be paid to MSMEs in high impact areas, such as ICT, agriculture, small-scale manufacturing, fashion design, leatherworks and other areas, where the state has strong comparative advantage.
The beneficiaries of the loan should understand that the money is not meant for consumption, but investment in profitable ventures.
Therefore, they should have their repayment plan well cut out to ensure that it is repaid on time in order to enable others to benefit from the next phase of the scheme.
The State Government deserves commendation for its people-oriented policies targeted at empowering the beneficiaries to boost their businesses and overall growth of MSMEs in the state.
Given the number of people currently being pulled out from labour market by the various goverment interventions, it is expected that in no distant time, the unemployment rate would be reduced to the barest minimum in the state.
Also, in line with the government’s resolve to provide infrastructural support, in the form of steady electricity to artisans and entrepreneurs, provision of good road networks, proper taxation and access to local and global markets, Abia is gradually becoming an investor’s destination.
# The New Abia is here, To God be the glory!
Ogbonnaya Ikokwu, a journalist and public affairs analyst, writes from Umuahia.