Imo gets N1 billion CBN soft loan for SMEs

Mr. Iyke Njoku, the Chief Economic Adviser (Planning, Budget and Economic Development) to Imo State Governor says the Central Bank of Nigeria (CBN) has approved the sum of N1 billion out of the N2 billion applied for in 2014 for disbursement to the operators of Micro, Small and Medium Scale businesses in the state.

Njoku noted that this approval is from the N200 billion the CBN put in the fore for states in the country to access.

He said the state is also expecting the N9 billion approved by the CBN last year for the states’ Anchor Borrower’s rice project scheduled to commence in full scale by the first quarter of this year.

‘Special Purpose Vehicle’

Njoku said the state government would adopt a template known as ‘Special Purpose Vehicle’ (SPV) for the disbursement of the loans to the qualified persons.

He said the loan beneficiaries will be expected to repay after one year with a single digit of 2 per cent as specified by the CBN.

”It is not meant for big businesses. It is not political. It is purely business. It may not have some form of collataral.” He said.

“The soft loan would be channeled to the Agro and trading sectors of the economy which the state government expects to have yields in several thousands at the end of the day.” He added.

Njoku said a monitoring team of officials from the Debt Management Office (DMO) were involved in accessing the funds.


Zainab Sa’id