Federal Government New Update On Loan Disbursement Related To Smedan

Federal Government New Update On Loan Disbursement Related To Smedan

Loan Disbursement Related To Smedan: According to statements made by the federal government, it is looking into ways to guarantee that loans to micro, small, and medium-sized businesses be disbursed in less than 13 days. According to the statement, the proposed alternative would lower the percentage of companies that fail while awaiting loan approvals.

This was revealed by Temitola Adekunle-Johnson, the President’s Senior Special Assistant, at the inaugural MSME Quarterly Communications Forum and Job Creation event on Friday in Abuja.

The goal, according to Adekunle-Johnson, is to make single-digit loans the standard for small businesses and to attain a single-digit loan for MSMEs.

“We are working toward the goal of ensuring SMEs have smooth and simple access to funding,” he stated. We want small and medium-sized enterprises (SMEs) to be able to request a loan and have it granted in no more than 13 days, not six months, as some of these businesses have the potential to fail during that time.

Once the loan assessment has been completed, the payments will be made quickly. That would assist us in lessening the backlog of MSMEs that are desperately seeking funding but lack the necessary collateral to secure loans.

The goal is to provide MSMEs with a single-digit loan. Our goal is to make sure MSMEs typically receive loans in the single digits.

The Federal Government’s “YouThrive” by Access job creation initiative would help five million Nigerians acquire skills through a partnership with Access Bank valued at N50 billion.

The project intends to empower MSMEs in multiple ways by providing training in digital, technical, and technical skills, affordable finance, and capacity building.

Chioma Ogwo, Head of Non-Financial Services at Access Bank, discussed the initiative and said that in addition to getting the digital, technical, and skill-acquisition training required for individuals to thrive and create wealth, participating small businesses would also be empowered in other ways, such as by increasing their capacity and granting them access to reasonably priced financing.

We’re providing them with reasonable loans at a rate of fifteen percent as well as free grants to worthy SMEs that have excelled. The recipients of our business exchange program will be able to travel and share ideas with their international peers.

“In four years, we hope to empower four million people, or one million each year. Each year, 700,000 would be made available for financing. Additionally, N50 billion has been set aside for this intervention, and it would be evaluated in a year, the speaker stated.

In the meantime, 3 million jobs in Nigeria were lost to flooding in 2023, according to Charles Odii, Director-General of the Small and medium-sized Businesses Development Agency of Nigeria.

He withheld information regarding precise numbers related to the flooding that severely damaged homes and lives.

He said that the government has created technology that can warn of an approaching flood threat throughout the states, which will enable it to take preventative action to evict possible victims.

According to him, SMEDAN is assisting MSMEs in overcoming obstacles, particularly those related to low production costs and rent, which allow them to be profitable and contribute to the economy.

Senator Ibrahim Hadejia, President Tinubu’s deputy chief of staff, claims that MSMEs give any economy flexibility and resilience.

nation with a strong MSME sector, he continued, would have a thriving economy and be able to adjust to some of the shocks that the world is currently experiencing.

“Collaborations like this one with Access Bank are essential for SMEs to expand. The impact of technology on agriculture should also be considered, as it plays a significant role in the GDP growth rate of the country.

Our yields on some of even our most common crops will increase if we do it correctly. To increase our output, we must have that. Additionally, it will inspire the next generation to get involved,” he said.