Small Businesses to Benefit from N2bn Intervention by Non-Interest Microfinance Bank
- A Microfinance Bank has launched a N2bn intervention for MSMEs in Borno
- The scheme targets women entrepreneurs, small businesses and clean energy users
- The programme aims to revive Borno’s economy after years of insurgency
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Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Micro, Small and Medium Enterprises (MSMEs) in Borno State have received a major financial boost as Rayyan Microfinance Bank unveiled a N2 billion intervention package aimed at reviving the local economy after years of insurgency.
Source: Getty Images
The non-interest microfinance institution announced the initiative during the launch of its services and intervention projects in Maiduguri, the Borno State capital.
Speaking at the event, Managing Director of the bank, Abubakar Musa, said the funding is designed to support small businesses and entrepreneurs across the state, particularly women and informal sector operators.
Intervention targets women, energy projects, others
According to Musa, the intervention is structured around five key projects. These include Rayyan Women, which targets female entrepreneurs, Sun Ray, an alternative energy programme for homes, offices and small businesses, alongside other MSME development schemes.
He disclosed that four of the projects will each receive N500 million, bringing the total funding commitment to N2 billion, while the fifth project focuses on investment opportunities for customers.
He added that although Rayyan Microfinance Bank was established in 2022, the launch event was organised to formally introduce the bank’s services and new projects to the public.
Musa also praised the Borno State Government for creating an enabling environment for private investment, noting that the administration of Governor Babagana Zulum has helped attract businesses back to the state.
“We are glad that the administration in Borno under the leadership of Professor Babagana Zulum has created the pathway to bring in private investors,” he said.
In his remarks, Governor Zulum welcomed the initiative and assured the bank of the state government’s readiness to collaborate in supporting economic recovery and job creation.
The N2bn intervention is expected to provide much-needed financing for small businesses, strengthen entrepreneurship and accelerate economic rebuilding in communities affected by nearly two decades of insecurity.
Source: Getty Images
FG supports MSMEs with World Bank loan
The federal government recently announced plans to strengthen small businesses with a new credit facility from the World Bank.
The loan, which might be disbursed to MSMEs at a single-digit interest rate, would be via the Development Bank of Nigeria (DBN).
The World Bank reportedly gave its nod for the loan, but analysts were worried over Nigeria’s burgeoning debt profile.
SMEDAN targets one million MSMEs with finance
Legit.ng earlier reported that the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has moved to establish a microfinance bank, seeking approval from the Central Bank of Nigeria to deepen access to finance for small businesses.
The proposed bank is expected to enable the agency to disburse, track, and monitor funds for micro, small, and medium enterprises, while also attracting more international development finance into the sector.
The move signals a major shift in how government-backed SME funding is managed, with SMEDAN aiming to cut bureaucratic delays and ensure loans reach intended beneficiaries faster and at a lower cost.
Source: Legit.ng
