CBN approves N1 billion for SMEs in Imo

CBN approves N1 billion for SMEs in Imo

CBN approves N1 billion for SMEs in Imo

The Central Bank of Nigeria (CBN), has approved of the sum of N1 billion soft loan for the Imo State Government for disbursement to the operators of Micro Small and Medium Scale businesses in the state, out of N2 billion applied for in 2014.

Also, the state is expecting the N9 billion approved of by the CBN last year for the states’ Anchor Borrower’s rice project scheduled to commence in full scale first quarter of this year.

”We have not received the funds” he said.

The Chief Economic Adviser, Planning, Budget and Economic Development, to the Governor, Iyke Njoku, made the disclosures on Tuesday while briefing some journalists in his office in Owerri, on the issue and 2017 budget proposal, noting that the CBN approved of the N1 billion in December 2016, out of a total of N200 billion the bank had put in the fore for the states in the country to access.
According to him, a template known as ‘Special Purpose Vehicle’ (SPV), would be adopted by the government for the disbursement of the loans to the qualified persons who are ready to repay one year with a single digit of 2 per cent as specified by the CBN.

He said: ”It is not meant for big businesses. It is not political. It is purely business. It may not have some form of collataral.”

Njoku, said the soft loan would be channelled to the Agro and trading sectors of the economy which the state government expects to have yields in several thousands at the end of the day.

In accessing the funds, Njoku said a monitoring team of officials from the Debt Management Office (DMO), were involved
On the budget proposal of N131,143.44,297 presented by the governor, Rochas Okorocha, to the House of Assembly, December 23, last year, Njoku, said the Economic Sector, Social and General administration took large chunk, while Works and Housing also collected much.

Agriculture, N6. 4 billion; Education N4.5 billion; Lands and Survey, N3.9 billion and Public Sector, N3.2 billion. He used the opportunity to state that the state was not owing any commercial bank in the country.

Investors and international donors, he said, have placed interests to the projects in driving the economic growth of the country, Njoku opined.

Source:© Copyright Guardian Online