Osun State Government will be giving out of eight hundred and twenty one million, three hundred and thirty five thousand Naira (N821,335,000.00) as soft loans to traders, artisans and business owners.
The loans will be given through the State Micro Credit agency to small scale enterprise and business owners across the state.
Reports stated that similar loan facilities were provided in 2014, 2015 and 2016, with their breakdown as N662,000,000 N1,496,000,000, and N681,000,000 respectively.
The State Commissioner for Commerce, Industry and Cooperatives, Mr Ismail Adekunle Jayeoba-Alagbada who stated this in Osogbo, South-West Nigeria said the 2018 edition of the loan facilities will boost the economy and small scale enterprises in the state.
“No fewer than 24,850 traders, small scales enterprise and business owners have benefitted from the loan totally N3.6bn.
The state government with the support of the Central Bank of Nigeria has thus provided a sum of N2.1bn as takeoff capital for the Osun Micro Credit Agency for disbursement to eligible beneficiaries.
The N2.1bn initial capital has thus matured to N3,660, 335, 000.
“Consequently, 11,391 beneficiaries from commerce were given N1,677,481,000 credit, 9,100 beneficiaries from agriculture sector were given N1,339, 682,000, while 2,552 manufacturers were provided N375, 711, 000”.
“1,379 artisans were given 204,538,000; 233 people from education sector got a sum of N34,388,000, while 195 people from health sector obtained N28,535,000,” the statement said.
The commissioner noted that 90 per cent of the beneficiaries have been repaying the credit to the Osun Micro Credit Agency.
He explained that as a result of direct re-ploughing of the initial capital provided by the state government, which was N100,000 per beneficiary, and recycling of the N2bn CBN fund, in addition to the interest and charges, the agency has operated with the total sum of N3,660, 335,000.
The commissioner said: “the success recorded in the repayment of the credit taken by the beneficiaries is an indication the economy of the state has improved, explaining that if the beneficiaries were not making enough profits, they would not be able to make repayment”.
Jayeoba-Alagbada, however, submitted that the credit facility achieved its intended purposes which are to create wealth and employment opportunity for the people of the state.