Delta govt boosts MSMEs with N1billion revolving loan

Delta State Government on Tuesday released N1billion revolving loan to boost Micro, Small and Medium Enterprises (MSMEs) in the state.

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The News Agency of Nigeria reports that the Delta State Government’s approval of the release was consolidated with a Memorandum of Understanding (MoU) signed with the Bank of Industry (BoI) for management of the fund.

Governor Sheriff Oborevwori, while addressing the audience during the ceremony at Government House, Asaba, said the initiative was a major milestone in his administration’s quest for inclusive growth and sustainable economic development under the M.O.R.E Agenda of his administration.

Mr Oborevwori said, “Today marks a remarkable moment in our administration’s unwavering commitment to job creation, inclusive growth, and sustainable economic development”.

He said that the fund was approved by the State Executive Council in 2025 and was designed to address the long-standing challenge of access to affordable finance by MSMEs.

He said that MSMEs remain the backbone of any strong economy, accounting for the highest employment rate and serving as key drivers of economic growth.

“By providing our traders, artisans, agro-processors and small-scale manufacturers with access to capital at single-digit interest rates, we are equipping them with the resources they need to expand their businesses, create jobs and contribute meaningfully to our economy.

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“The financial window is deliberately structured to reduce the burden of high borrowing costs that often stifle entrepreneurial growth, while ensuring sustainability through a revolving loan system for the entrepreneurs.

“This one billion naira is a revolving fund. Loans granted under this arrangement must be recovered so that other eligible entrepreneurs can also benefit.

“This responsibility is non-negotiable and must be discharged with the utmost diligence and integrity,” he said.

The governor explained that the choice of the Bank of Industry as managers of the fund was informed by its proven track record as Nigeria’s foremost development finance institution, with strong credit appraisal systems and business support frameworks.

“Our partnership with the Bank of Industry goes beyond finance. It integrates vital business development and support services that entrepreneurs need to succeed and thrive in today’s highly competitive economy,” he said.

Mr Oborevwori added that he was confident in the bank’s capacity to manage the fund transparently and efficiently.

He reflected on the state’s long history of empowerment programmes, noting that while grants remain relevant, excessive reliance on them could undermine accountability.

He said, “When you keep giving grants without structure, some beneficiaries may not value the funds. This loan-based model will instil financial discipline and help entrepreneurs appreciate the value of money, invest wisely and grow sustainably”.

He said that the initiative would not replace existing empowerment schemes, assuring that the government would continue to roll out grants and other support programmes where necessary.

“This MoU is another critical pillar of our broader economic empowerment strategy. It complements, rather than replaces, our ongoing interventions,” he said.

According to the governor, the programme was initially planned for December but was shifted to January to ensure maximum impact.

“January is when entrepreneurs are fully focused on rebuilding and expanding their businesses for the year,” he said.

He, however, assured that the N1 billion revolving fund could be significantly scaled up if properly managed.

“If this fund demonstrates impact, there will be no limit to what we can do together. We can scale it to N10 billion, N20 billion or even N30 billion. This is a starting point,” he said.

He expressed confidence that the partnership with the Bank of Industry would help build a stronger, more resilient private sector capable of driving long-term prosperity for Delta State and its people.

‘Strategic step towards expanding enterprise’

Earlier, the Managing Director, Bank of Industry, Olasupo Olusi, described the partnership as a strategic step towards expanding enterprise activities and unlocking sustainable economic growth in the state.

He said the revolving fund provided by the Delta Government, would strengthen MSMEs by improving access to affordable finance and deepening collaboration between the state government and Nigeria’s premier development finance institution.

According to Mr Olusi, the initiative aligns with the BOI’s mandate of translating policy priorities into practical financing solutions that address business challenges across key sectors of the economy.