FG Disburses N1.2bn Loan to Empower 2,500 Entrepreneurs in Sokoto

The Federal Government has released over N1.2 billion to support around 2,500 entrepreneurs in Sokoto State as part of a nationwide loan initiative launched under President Bola Tinubu’s administration. Mrs. Habiba Ismaila, the State Manager of the Bank of Industry (BOI) for Sokoto and Zamfara States, shared this information during a town hall meeting in Sokoto on Friday. She explained that the Federal Government, in partnership with BOI, has rolled out various loan schemes designed to boost business opportunities across the country. Ismaila outlined that the first phase of the N200 billion intervention, with N50 billion allocated as one-time conditional grants, focuses on supporting nano-businesses within the MSME sector. “About 2,500 people in 23 local government areas of Sokoto State have benefited from this initiative, with each small-scale business owner receiving N50,000 to promote local economic growth,” she said. She further explained that the second phase, worth N75 billion, targets Micro, Small, and Medium Enterprises (MSMEs), offering loans of up to N5 million, an increase from the previous N1 million limit set by the President. The N75 billion MSME scheme, along with another for large businesses, is aimed at diversifying Nigeria’s economy, generating jobs, fostering value-added production, revitalizing communities, and enhancing exports. “These low-interest loans, with an interest rate of 9 percent, will be supported by ongoing tax reforms aimed at easing the tax burden on Nigerian businesses. The overarching goal is to further diversify the economy, create jobs, and improve foreign exchange inflows,” she added. Ismaila also emphasized the importance of public awareness regarding these loan schemes, urging potential applicants to be wary of scammers asking for payments to access the funds. In related remarks, Mr. Muazu Barau, the State Coordinator for the Small and Medium Scale Entrepreneurs Development of Nigeria, pointed out that the reforms are intended to support sustainable economic growth in the country. He emphasized the government’s commitment to ensuring that these targeted support programs address the challenges posed by the nation’s bold economic reforms. “This initiative reflects President Tinubu’s firm commitment to his Renewed Hope Agenda, which serves as the foundation for his governance vision in Nigeria,” Barau remarked. Mr. Abubakar Balarabe, Executive Secretary of Sokoto State’s Small Scale Enterprises Development Agency, described the town hall meeting as one of the most impactful business support policies of the current administration. He assured that the state government would support efforts to position Nigeria for rapid economic growth by focusing on dynamic and industrious entrepreneurs nationwide. “It is crucial that all eligible applicants confidently apply for the loans, as this government offers equal opportunities for all. The selection process will be based on fairness and transparency, in line with President Tinubu’s principles of good governance,” Balarabe said. He also underscored the vital role of MSMEs in Nigeria’s non-oil economy, noting their significant contributions to innovation, job creation, and economic growth in key sectors such as agriculture, manufacturing, and services. The event attracted a wide range of participants, including representatives from the state government, entrepreneurs, and the banking and economic sectors.