James Emejo in Abuja
Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has granted a one-year moratorium to beneficiaries of the One Local Government One Product (OLOP) intervention fund.
Director General of the agency, Dr. Dikko Umaru Radda said the extension takes effect from April 2020.
In a statement, he said SMEDAN was conscious of the fact that the MSMEs remained critical to the sustenance of the economy.
He said after studying the current trends regarding the global COVID-19 pandemic as it affected the country, the management resolved to further extend the moratorium on the loans.
He therefore, urged the participating Micro Finance Banks MFBS to take note for compliance.
Radda however, appealed to MSMEs in the country to avail themselves of the CBN-N50 billion COVID-19 fund for households and SMEs, stressing that the apex bank had waived some requirements for obtaining the loan.
He added that this is the right time for MSMEs to capitalise on the waiver and access the loan.
SMEDAN had in June 2019 commenced the disbursement of about N500 million to beneficiaries of the OLOP project involving Small and Medium Enterprises (SMEs) in 109 Local Government Areas (LGAs) across the country.
The initiative seeks to empower SMEs to harness the full potential of any product which they have competitive and comparative advantages over others in any particular LGA.
Beneficiaries who came under cooperative societies were able to access between N3 million to N5 million for both the machinery and working capital needed to achieve their business objectives.