The Governor of Abia State, Dr. Alex Otti has announced one billion naira (₦1,000,000,000) interest free loan to support entrepreneurs in the state.
Mr. Otti made the announcement on Friday, stressing that the development is geared towards uplifting 10,000 entrepreneurs in Abia.
“In fulfillment of our campaign promises, we are pleased to announce the official disbursement of a ₦1,000,000,000 Interest-Free Revolving Loan. The initiative aims to empower 10,000 Nano and Small Scale Entrepreneurs across the 184 wards in the 17 Local Government Areas (LGAs) of Abia State.
“Through the scheme, the State Government will provide essential financial support to entrepreneurs, fostering business growth and economic development,” he stated.
The governor emphasised that the Abia State Cooperative Support Scheme has been set up to address the financial difficulties faced by small-scale business owners in both rural and urban communities.
He explained that his administration’s focus is on enhancing business awareness at the grassroots level, recognizing that the approach is crucial for combating endemic poverty and addressing worrisome unemployment rate.
“The selected beneficiaries for this batch include farmers, petty traders, and artisans from various parts of the state.”
Governor Otti further said: “Our model emphasizes productivity, job creation, and poverty reduction. Beyond the current beneficiaries, our target is to directly impact approximately 100,000 businesses over the next thirty-six months.
“We remain optimistic that today’s recipients will diligently repay their loans, enabling others to benefit. Additionally, we aspire to expand our reach beyond the set target, potentially collaborating with international partners and donor agencies to broaden opportunities.
“To ensure effective ownership and control of the scheme, we have strategically leveraged community-based cooperative societies for loan disbursement. Members must understand the consequences of deliberate loan defaults; a depleted resource pool affects the chances of other members benefiting.”
He mentioned that the scheme aligns seamlessly with his administration’s strategic development agenda – and reiterated his commitment to improving the welfare of Abia residents at the grassroots level.
“Our administration rejects a scenario where a select few monopolize community resources while the majority wallow in poverty.”
He expressed gratitude to stakeholders and the Coordinator of the scheme, Hon. Ishmael Onuoha as well as his Senior Special Assistant on Cooperative Societies for their hard work in ensuring the success of the initiative.
