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Obiano inaugurates ASBA, disburses N1bn MSMEs loans to small businesses

By BusinessNews Staff on June 26, 2015

The Governor of Anambra State, Chief Willie Obiano, has inaugurated the Anambra State Small Business Agency (ASBA) to serve as the catalyst for growth in the MSME sector in the state, assuring the entrepreneurs that the time to smile has come.
Obiano explained that the initiative was to ensure that the state achieves sustainable development of Micro, Small and Medium Enterprises (MSMEs) and becomes the hub for MSME empowerment in the country.
Inaugurating the agency at the Governor’s Lodge, Amawbia recently, the governor announced that the state had secured the sum of N2 billion for on-lending through ASBA to eligible beneficiaries in partnership with participating financing institutions that meet specific selection criteria in the State.
Out of the N2 billion accessible to Anambra State after signing a Memorandum of Understanding (MoU) with the Central Bank of Nigeria (CBN) with an Irrevocable Standing Payment Order (ISPO) for the principal and accrued interest, a sum of N1 billion has already been drawn-down out of which N205 million was disbursed to beneficiaries in the first phase of the scheme.
The handing over of symbolic cheques to some of the beneficiaries took place at Amawbia at the launch of the first Phase of the ASBA/CBN MSMEs Development Fund in Anambra State.
The first set of ten beneficiaries were shortlisted after due diligence for the Revolving Working Capital Facility. Among the beneficiaries are Austraco Industries Limited for bakery and beverages production; Bold Ventures Limited for PVC Pipe manufacturing, and Zara Industries Limited for poultry and fish feed production.
Others are I.I.C Construction Co. Limited, for fabricated steel production; Omus Oil Limited, for production of steel and associated materials and Restructure Nigeria Limited, for production of aluminium cooking pots.
Speaking after the inauguration, Obiano expressed happiness that the funds drawn from the CBN counterpart grant has finally been accessed by the state to address the gap and unlock the potential of Nigerian MSMEs in order to improve their access to finance, shore up potential for job creation, and enable them reduce poverty within the country.
According to him, “MSMEs are globally recognised as the critical engine of economic growth due to their potential to create jobs, food production, generate income and reduce poverty,” stressing that “Anambra State is a significant hub for MSMEs in the country, with the State known as the nucleus for both the automotive spare parts industry in Nnewi and general merchandise in Onitsha.”
The governor commended ASBA for making the initiative come to fruition, stressing that its board members were carefully selected with a composition of eminently qualified individuals who will ensure the integrity and transparency of the process.
He noted the impact the MSMEs activities will have with proper funding in tandem with the government’s agricultural programme which is one of his administration’s four pillars of economic development. Such initiatives like the massive production of fish fingerlings at the Local government level, he noted, would eventually lead to exports and the existence of fish villages, with ripples effect on employment and economic empowerment.
In a brief remark, Chairman of ASBA Board, Mr. Greg Obi, observed that the governor’s vision for the realisation of the ASBA initiative was laser-focused since the inauguration of the Board over six months ago. He thanked the governor for his support to the agency which ensured the realisation of its successful take-off as demonstrated in the event of the day.
Also, Managing Director/CEO, Clement Chukwuka, described ASBA as the State’s Special Purpose Vehicle for assessing the MSMEs fund and assured that the agency is committed to not just disbursing and monitoring the MSMEs who access the funds, but also for other funding sources for financial and capacity empowerment of small to medium scale businesses in Anambra State.

[ThisDay]

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