Gov Otti Unveils N1b Loans For 100,000 SME Businesses In Abia

Dr. Alex Otti, the governor of Abia State, announced on Saturday the launch of N1 billion in loans for 100,000 small-scale businesses in the state. He stated on his official X handle that the credit facilities are intended to empower citizens to run their businesses and overcome economic hardship.

The governor announced the disbursement of a ₦1,000,000,000 Interest-Free Revolving Loan, fulfilling his campaign promises. The initiative aims to empower 10,000 Nano and Small Scale Entrepreneurs in Abia State’s 184 wards and 17 Local Government Areas (LGAs). The State Government will use the scheme to provide crucial financial assistance to entrepreneurs, thereby promoting business expansion and development.

The Abia State Cooperative Support Scheme was established to help small-business owners in both rural and urban areas overcome financial difficulties. Our priority is to raise business awareness at the grassroots level, recognising that this approach is critical to combating endemic poverty and addressing our troubling unemployment rate. Farmers, petty traders, and artisans from across the state have been chosen as beneficiaries for this batch.

Our model prioritises productivity, job creation, and poverty reduction. Beyond the current beneficiaries, we hope to directly impact approximately 100,000 businesses over the next 36 months. We are still optimistic that today’s recipients will diligently repay their loans, allowing others to benefit. In addition, we hope to broaden our reach beyond the set target by collaborating with international partners and donor agencies to expand opportunities.

To ensure effective ownership and control of the scheme, we strategically used community-based cooperative societies to disburse loan funds. Members must understand the ramifications of intentional loan defaults; a depleted resource pool reduces the likelihood of other members benefiting.

The scheme is completely consistent with our strategic development plan. We are dedicated to improving the lives of our citizens on a grassroots level. Our administration opposes a scenario in which a few people monopolise community resources while the majority suffers in poverty.

Special thanks to stakeholders and Hon. Ishmael Onuoha, the scheme’s coordinator and Senior Special Assistant to the Governor on Cooperative Societies, for their efforts to ensure the initiative’s success.