SMEDAN To Support MSMEs Through Free Interest Loans

NEWS DIGEST – The Small and Medium Enterprises Development Agency of Nigeria, SMEDAN, has restated its commitment to the growth of Small Scale Businesses in the country through free interest loans to stakeholders in the sector.

The Director-General of SMEDAN, Dr Dikko Umaru-Radda stated this in Abuja while presenting an award of excellence to a private company.

Dr Umaru-Radda said the award was in recognition of the company’s ability to return a loan of two million two hundred and fifty thousand naira SMEDAN granted it boost its production under the present administration’s one local government one product programme.

The Director-General of SMEDAN said the award was to encourage other beneficiaries to refund their loans at the appropriate time to enable other stakeholders to benefit from the programme.

According to him, the private company benefitted from the programme in 2018 but was able to pay back the loan despite given merit of one year due to the effects of COVID-19 pandemic on small scale businesses in the country.

He said the beneficiary according to the programme was asked to repay 70 per cent of the loan while SMEDAN took care of the bank’s administrative charges.

“We are celebrating you today not because you’re only a beneficiary of the present but for your exemplary character among the Nigerian MSMEs and this has given us confidence that in Nigeria we still have people of good character who have exhibited that quality and are proud to be called Nigerians because of their exemplary character” He stated

Dr Umaru-Radda explained that President Muhammadu Buhari led administration has found it worthy to donate 30 per cent of the loan to the beneficiaries of the programme in order to support them to grow.

He further stated that the present administration was trying to reduce the gap that exists for financial inclusion.

He expressed happiness that the private company was producing five products before collecting the loan but at present, it has scaled up its production to ten due to the intervention of the Federal Government.

“Today, we’re proud to say that they have also improve on their packaging and the quality of the products towards meeting international standard” the SMEDAN DG stressed.

While donating the sum of five hundred thousand naira to further support the company, Dr Umaru-Radda commended the microfinance banks that are collaborating with SMEDAN towards achieving its mandate.

Receiving the award, the Representative of the company, Valentine Anosike thanked SMEDAN for the kind gesture.