Charles Odii, the Director General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), highlighted the challenge of inadequate information dissemination about government intervention programs hindering small enterprises’ access to funds.
During the signing of a Memorandum of Understanding (MoU) between SMEDAN and Sterling Bank, Odii stressed that informing the right businesses about available funds was as crucial as securing the funds from various partners. He mentioned a case where about N500 million in funds remained unutilized in a bank, with only six individuals accessing it due to poor information dissemination.
Odii, speaking at the ceremony held at the agency headquarters in Abuja, announced the acquisition of a N5 billion loan portfolio aimed at assisting over 10,000 Small and Medium Enterprises (SMEs) in Nigeria. The strategic partnership aims to grant SMEs access to loans ranging from N250,000 to N2.5 million at a single-digit interest rate, with applications set to commence in two weeks.
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The DG emphasized the agency’s goal to simplify access to finance, acknowledging the scarcity and costliness of finance in the region. The collaboration with Sterling Bank seeks to alleviate this issue by creating a loan portfolio tailored to support thousands of small businesses.
Abubakar Suleiman, the Managing Director of Sterling Bank, highlighted that the loan access would not require collateral and would offer a two-year repayment window. He emphasized the bank’s commitment to providing an accessible funding avenue for small businesses, introducing a platform named ‘Banker.’ This platform is designed to streamline the process of accessing financing, assisting businesses in organizing their operations, maintaining records, and facilitating repayments.
Suleiman added that the platform would not only aid in accessing funds but also guide businesses in understanding the reasons behind any shortcomings in their applications. This approach aims to help businesses enhance their practices, enabling them to reapply for funding successfully in the future.
The collaboration between SMEDAN and Sterling Bank represents a concerted effort to simplify and improve access to finance for small businesses, ultimately contributing to their growth and development in Nigeria.
