In its giant stride towards repositioning the small scale enterprises for economic transformation of the state, the Kwara State Government has flagged-off a N250 million micro credit intervention scheme for Small and Medium Scale Enterprises, designed to strengthen the capacity of cooperative societies to contribute to boost economic activity in the state.
Governor AbdulFatah Ahmed said the N250 million was the first tranche of a N500 million fund designed to boost entrepreneurship and enhance the economic well-being of people of the state, adding that another N750 million would be made available to small holding farmers in the state in order to promote food security and wealth creation.
Speaking at the flag off ceremony of Kwara State Micro Credit intervention Sheme at the the state Banquet Hall Ilorin on Thursday, Ahmed noted that private sector organization such as SMEs are major contributors to the development of the world’s most advance economies as the stimulate economic activities, create jobs and contribute to the growth of the countries added that “ we are building the capacity of Cooperative Societies to serve as the platform for the development of the SME sector”.
Gov. Ahmed stated that beneficiaries of the scheme were selected following rigorous analyses of applications and conduct of due diligence on cooperatives.
According to him, “Ten micro finance banks have been identified for the administration of the loan scheme for easy and effective management as well as the quick recovery of loans. Consequently, SMEs are advised to join or form Cooperative societies to qualify them to benefit from this loan scheme. Indeed, this is a unique opportunity for qualified small businesses and their promoters to economically empower themselves and others.
Alh. AbdulFatah Ahmed calls on beneficiaries of the fund to ensure its effective use for productive ventures. He urges them to utilize the loan for business activities that can create prosperity through youth job creation and entrepreneurship as well as improvement in the welfare of the people of the State. He also advice them to adhere strictly to the agreed repayment schedule for the benefit of other applicants and the sustenance of the scheme.
The commissioner for commerce and cooperatives Alhaji Sakariyah Onimago said that for the first phase of the scheme, N250m would be disbursed to the beneficiaries. He stated that ten micro finance bank had been enlisted for the disbursement of the loans. Such as Balogun Fulani microfinance bank, Ilorin micro finance bank, Magajin gari micro finance bank, Apex micro finance bank, Kwara commercial micro finance bank, Omu-aran micro finance bank, Iludun-oro micro finance bank, Heritage micro finance bank, Ibolo micro finance bank, Iyeru-okin micro finance bank.
“There is no doubt that this constitutes a very important instrument in the mobilization of human resources at the grass root level as a spring board for economic growth and development”.
“Cooperative organizations all over the world have played significant roles in the socio economic development of countries and states in wealth creation and ensuring significant turn around in the living standards of the citizenry” he added.