Abia State to Launch N1 Billion Interest-Free Loan Scheme for SMEs and Traders

Abia State is launching a N1 billion interest-free loan scheme to support traders and SMEs, aiming to empower 9,200 beneficiaries across 184 wards. This initiative is part of a broader effort to stimulate local economies and alleviate the pressures of recent economic changes.

The Abia State Government is set to roll out a significant economic empowerment initiative aimed at supporting traders and small and medium-sized enterprises (SMEs). Commissioner for Information, Prince Okey Kanu, announced the upcoming disbursement of a N1 billion interest-free loan scheme during a press briefing. This scheme targets 9,200 beneficiaries across the state’s 184 political wards in its initial phase.

The initiative is designed to provide much-needed financial support to local traders and SMEs, particularly in light of the economic challenges posed by recent fuel subsidy reforms. The state government aims to alleviate the financial burden on small business owners and boost the local economy through this substantial loan scheme.

The interest-free loan scheme will see each of the 184 political wards in Abia State benefit, with 50 beneficiaries per ward. The funds are intended to help these small business operators enhance their operations, increase their capital base, and mitigate the adverse effects of the fuel subsidy removal. This initiative is part of the state’s broader strategy to stimulate economic growth and create a more resilient local economy.

Commissioner Kanu emphasized the state government’s commitment to the welfare of its citizens and the importance of supporting small businesses as they are crucial to the state’s economic fabric. The scheme aims to create a ripple effect that will rejuvenate the state’s economy by empowering its base.

The loan scheme is structured to ensure transparency and accountability, with measures in place to monitor the distribution and utilization of funds. The government has called for active participation from community leaders to oversee the process and ensure that the loans reach the intended beneficiaries.

In conjunction with this loan scheme, the state government is also focused on improving internally generated revenue (IGR). As of June 2024, Abia State has recorded an IGR of N15.4 billion, averaging N2.7 billion monthly, which is still below the target of N4.3 billion. The government is optimistic that ongoing reforms and initiatives will bolster revenue in the coming months.

Governor Alex Otti’s administration continues to prioritize the welfare of workers and residents. The administration has been diligent in clearing pension arrears and ensuring timely payment of salaries. The government’s focus on economic empowerment through initiatives like the interest-free loan scheme underscores its commitment to improving the livelihood of its citizens.

With these efforts, the state aims to foster a supportive environment for small businesses, driving economic growth, and ensuring that the benefits of government programs reach the grassroots level. The N1 billion interest-free loan scheme represents a significant step towards economic revitalization and sustainable development in Abia State.