08 Aug 2020 Remarks at the Flag-off of the N1 billion MSME Development Fund
We are here today to flag off our administration’s N1 billion Micro, Small and Medium Enterprises (MSME) Development Fund. This injection of funds into Small and Medium scale enterprises is part of our Post-COVID-19 Economic Recovery Plan. When we talk about MSMEs, we are referring to organisations that have between less than ten and less than 200 employees.
We are well aware that even though we did not effect a total lockdown in Oyo State, many small and medium scale enterprises have suffered and are suffering because of the partial lockdown. I have mentioned how private schools and businesses that depend on them, nightclubs and event centres and their dependants are unable to earn. Inflation rates have also affected people’s spending power. So, even businesses that can operate are not running at optimum.
Therefore, an injection of funds as we are about to do, will serve to revitalise the economy. We are, therefore, continuing this scheme that will o Stimulate entrepreneurship as a key component of our administration’s economic expansion drive o Target the growth of MSMEs in the state for an enhanced GDP o Create more employment opportunities for people of Oyo State.
We are making this intervention through the Oyo State Investment and Public-Private Partnership Agency (OYSIPA) more efficient. The loan disbursement and recovery system will ensure that the scheme enjoys a broader spread and ultimately has a wider area of coverage. We are looking at reaching MSMEs across the 33 Local Government Areas in the state.
This fund will also provide loan facilities of up to N 3 Million per MSME. It will be disbursed through Microfinance Banks at a single-digit interest rate.
It is, therefore, my pleasure to flag off this N1 billion Micro, Small and Medium Enterprises (MSME) Development Fund. May the beneficiaries of this fund use it judiciously and may Oyo State derive maximum economic benefits from their enterprise.
Governor Seyi Makinde, June 19, 2020.