FG approves $268 million in Soft Loans to Entrepreneurs and Innovators

THE Federal Government on Wednesday as part of its agenda to gradually diversify the Nigerian economyfrom oil dependence by uplifting other sectors in the country has approved $268 million in soft loans to support entrepreneurs and innovators.

Vice President Yemi Osinbajo said, “Nigeria approved disbursing $268 million in funding to support agricultural entrepreneurs and young technology innovators”.

The presidency in a statement  disclosed that one tranche of the funding, worth 90 billion Naira ($248 million), will be dispensed by the central bank as “soft loans” for people building small-scale agricultural businesses.




     

     

    Another $20 million will provide funding support young innovators in technology.

    Recently,  the National Bureau of Statistics’s (NBS) report on Micro, Small and Medium Enterprises (MSME) shows that 85 per cent of businesses could not have access to external financing within 2013 and 2017.

    Nigeria’s benchmark interest rate is among the highest in Africa at 13.5 per cent. Ethiopia’s is 7 per cent; Kenya’s is 9 per cent; South Africa is 6.25 per cent; Zambia is 10.25 per cent, and Cameroon is 4.25 per cent.

    A soft loan is a loan with no interest or a below-market rate of interest with lenient terms.

    Advertisements

    Join the ICIR WhatsApp channel for in-depth reports on the economy, politics and governance, and investigative reports.

    Support the ICIR

    We invite you to support us to continue the work we do.

    Your support will strengthen journalism in Nigeria and help sustain our democracy.

    If you or someone you know has a lead, tip or personal experience about this report, our WhatsApp line is open and confidential for a conversation

    1 COMMENT

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here


    Support the ICIR

    We need your support to produce excellent journalism at all times.

    - Advertisement

    Recent

    - Advertisement