The Federal Government has disbursed over N1.2 billion to 2,500 entrepreneurs in Sokoto State as part of its ongoing national loan initiatives. This initiative, introduced by President Bola Tinubu’s administration, aims to enhance business opportunities and support grassroots economic development. The funds were distributed through the Bank of Industry (BoI), which is managing various loan schemes targeted at different business sectors across the country. The disbursement was announced during a town hall meeting held in Sokoto on Friday, where the State Manager of BoI for Sokoto and Zamfara states, Habiba Sambawa, provided details of the programs.
Sambawa explained that the first phase of the N200 billion intervention fund, totalling N50 billion, has been allocated as one-off conditional grants for nanobusinesses within the Nano, Micro, Small, and Medium Enterprises (NMSMEs) sector. Each small-scale business owner in Sokoto received N50,000, aimed at boosting grassroots economic activities in the state. This first phase benefitted approximately 2,500 entrepreneurs across 23 local government areas in Sokoto.
The second phase of the intervention, amounting to N75 billion, is focused on micro, small, and medium enterprises (MSMEs). In this phase, entrepreneurs can access loans up to N5 million, an increase from the earlier cap of N1 million, as approved by President Tinubu. These loans are part of the government’s efforts to diversify the Nigerian economy, create jobs, promote value addition, and increase exports, while also revitalizing communities.
Additionally, the Federal Government is complementing these loan schemes with ongoing tax reforms to reduce the financial burden on businesses in the country. Sambawa emphasized that the interest rates on these loans will remain single-digit, making them more accessible to entrepreneurs. The government’s broader strategy is designed to stimulate economic growth by supporting businesses at all levels, from nanobusinesses to large enterprises.
Muazu Barau, the State Coordinator of the Small and Medium-Scale Entrepreneurs Development of Nigeria, highlighted that these reforms are crucial for ensuring sustainable economic growth and prosperity. He stressed the government’s commitment to ensuring that the targeted support programs would help alleviate the challenges faced by businesses, particularly considering the country’s ongoing economic reforms. Alhaji Abubakar Balarabe, the Executive Secretary of Sokoto State Small Scale Enterprises Development Agency also praised the town hall meeting, recognising it as an essential step in the government’s business support initiatives.
