SMEDAN Raises Alarm as Some Nigerians Misuse Business Loans to Buy Cars, Marry More Wives
- SMEDAN says many Nigerians who collect business loans do not repay them and often use the money for personal things
- Officials also noted that this makes it hard for others to access loans and shows a need for more responsibility among citizens
- At the conference, speakers encouraged Nigerians to not only complain but also take positive actions to improve the country
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has raised concerns about how some Nigerians handle business loans.
According to the agency, many entrepreneurs who receive loans meant for Micro, Small, and Medium Enterprises (MSMEs) often fail to repay them.
Source: UGC
Speaking at the People’s Roundtable Conference, SMEDAN’s Director-General, Mr. Charles Odii, represented by Charity Abah, explained that the agency mainly connects businesses with lenders rather than giving out loans directly.
However, a recurring problem is that some beneficiaries misuse the funds. Instead of investing in their businesses, they spend the money on personal needs like buying cars or expanding their families.
He said:
“We have been part of so many loan programmes that we’ve facilitated as a middleman. We are still running with it for the past five, six years. Some people will collect those loans and divert it. Some will go and buy cars, some will go and marry more wives, and so on and so forth.”
He also pointed out that some of these loans are designed to be repaid and reused by others.
Unfortunately, many recipients do not return the money, making it difficult for others to benefit. In some cases, borrowers even disappear or change their contact details to avoid repayment.
Earlier, Odii expressed concern about the low participation of entrepreneurs in available intervention programmes.
Call for responsible citizenship
At the same event, Hon. Rinsola Abiola of the Citizenship and Leadership Training Centre spoke about the relationship between leaders and citizens. She noted that there seems to be a growing gap between both groups.
Abiola explained that when young people speak up or protest, it should not always be seen as negative.
Instead, she described it as a sign that they care deeply about the country. However, she stressed that being a good citizen goes beyond complaining.
People must also take meaningful actions to contribute to national development and use their rights responsibly.
Building dialogue, collaboration
In his opening remarks, Emmanuel Ayantayo, represented by Mr. Oladeji Adesola, highlighted the purpose of the People’s Roundtable.
He said the event aims to bring together different groups, including leaders, professionals, educators, and policymakers.
The goal is to encourage open discussions, share real-life experiences, and find practical solutions to national issues.
According to him, the platform helps connect ideas with policies and creates opportunities for citizens to engage directly with decision-makers.
Source: UGC
SMEDAN begins disbursement of N5bn to small businesses
Meanwhile, Legit.ng earlier reported that SMEDAN was disbursing a N5 billion loan to small business owners.
The agency said the single-digit loan is in partnership with Sterling Bank for small business owners to grow their businesses.
SMEDAN revealed that the hurdles surrounding access to the loan have been cleared and that small business owners can now apply.
Source: Legit.ng
