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Federal Govt Gives Out Non-Interest Loans For Small Businesses Across Nigeria




This is an image of two business hands performing a handshake. ( Photo File)

Federal Government Issues Loans In Millions To Businesses Across The country

As part of the federal government Social Investment Programme, it has issued about 350,000 small businesses across the country, interest free loans.

The beneficiaries of Federal Government Enterprise and Empowerment Programme (GEEP) MarketMoni scheme are located in all the 36 states and the Federal Capital Territory (FCT).

GEEP MarketMoni is a Federal Government Social Intervention Programme (SIP) that provides interest-free loans which falls between N10,000 and N100,000 to micro enterprises, the segments of society with the greatest difficulty accessing credit.

The scheme, which is executed by Bank of Industry (BOI), a parastatal of the Federal Ministry of Industry, Trade and Investment, directly impacts traders, market women, artisans, and farmers nationwide.

In a view to assessing the impact of the scheme, the Vice President Yemi Osinbajo met with a section of about 12,000 beneficiaries from Kano State during the state’s edition of MSME Clinic yesterday.

The Special Assistant to the Vice President on MSME, Tola Johnson, said “The best thing that has happened to micro businesses in Nigeria is the GEEP MarketMoni programme. It dealt with their collateral challenge because all they need is their data, a bank account and Bank Verification Number (BVN).”

Johnson noted that of the 37million small businesses in Nigeria, 36.9 million are microenterprises.

“This informed the Federal Government’s attention to this space. Micro enterprises are responsible for almost 50 per cent of the country’s Gross Domestic Product and 80 per cent of the workforce,” he added.

According to Mrs Adeniji, under the GEEP MarketMoni scheme, BOI has given out more than 350, 000 microcredit loans across the country.

“GEEP MarketMoni has given people who otherwise have no access to finance, money to finance their businesses.

These micro enterprises are expanding their businesses, making more profit and employing more people.”

“Most of our beneficiaries are women, some of whom are widows and single mothers. We are improving the quality of their lives, their children’s lives, their health and even education. We are seeing very quantifiable impacts. No government has ever done this,” she added.

Speaking with journalists in Kano, the Head of Agent Networks, Sherifat Abdullahi, who interacts directly with agents, association heads and the beneficiaries, said, “Apart from the 350,000 direct beneficiaries across the country, it has created employment opportunities for over 5,000 Nigerians who act as MarketMoni agents, some of whom are graduates, previously unemployed.”

Sherifat further noted; “the exercise has been a very emotional journey for me, watching how this interest-free loan scheme is changing the lives of people, especially women and the vulnerable. We truly appreciate the Federal Government for doing this.”

According to the National Bureau of Statistics, there are at least 37 million MSMEs in Nigeria, 85 per cent of which lack access to funding. It is in a bid to address this challenge head-on that the President Muhammadu Buhari-led administration established MarketMoni – the Government Enterprise and Empowerment Programme (GEEP), a social intervention programme aimed at reinvigorating the economy at the base of the pyramid, the hotbed of Nigeria’s financially vulnerable.

To benefit from the scheme, applicants just need to apply through their registered Market Associations and Cooperatives, have a Bank Verification Number(BVN), and a mobile phone.

The loans range from N10,000 to N100,000, and are expected to be repaid within six months without interest.