In a significant move to bolster the state’s micro, small, and medium enterprise (MSME) sector, the Cross River State Government, in partnership with the Bank of Industry (BOI), hosted an interactive townhall session recently. The event provided local business owners with a masterclass on accessing the ₦2 Billion matching funds designated for economic development across the state.
The engagement session, held at the Prof. Eyo Ita House in Calabar, sought to demystify the application process and provide clarity on the eligibility criteria for the facility.
In his opening remarks, the Director-General and Chief Executive Officer of the Cross River State Microfinance and Enterprise Development Agency (CRSMEDA), Great Ogban, emphasized the administration’s commitment to driving grassroots economic growth by removing barriers to affordable credit for entrepreneurs.
Representing the Bank of Industry, Pacqueens Irabor, Divisional Head (South-South), provided a detailed breakdown of the facility. He noted that the loan is designed with a favorable tenure of three to five years at a single-digit interest rate of 7.5%. Irabor further outlined the cost structure, which includes an appraisal fee of 1% and a monitoring fee of 0.125%, both payable only after the formal acceptance of an offer letter. The facility is split into two categories: term loans, which cater to capital items such as production equipment, and working capital loans, which cater to operational overheads. Eligibility extends across a wide range of sectors, including fashion, hospitality, agriculture, and manufacturing. Notably, the fund also supports importers of production equipment, though not finished retail goods.
To streamline the application process, the BOI highlighted the essential documentation required. Applicants must provide two invoices, consisting of one proforma and one operational invoice, along with 12 months of bank statements of the business account. For those seeking less than 3 million Naira, one guarantor is required, and the guarantor can be a business owner, professional, bank staff member, or civil servant. For those seeking more than 5 to 10 million Naira and above, two guarantors are required, as well as collateral such as a Certificate of Occupancy of a land valued at two times the amount being requested, and the business must be registered as a limited liability company.
Supporting the initiative, Yemi Nelson, Director of the Land Bank at the Cross River Geographic Information Agency (CRGIA), addressed concerns regarding collateral documentation. He noted that the agency has streamlined the process of land documentation, with the highlight being the 60-day time frame for preparing Certificates of Occupancy.
Additionally, Ayi Archibong, Managing Director of the Cross River Microfinance Bank, reaffirmed the bank’s dedication to supporting the state’s MSME ecosystem, asserting that the bank now offers facilities to small businesses to further strengthen MSME development in the state.
GALLERY:
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