The Cross River State Government has partnered with the Bank of Industry (BOI) to introduce a ₦2 billion matching fund aimed at supporting Micro, Small and Medium Enterprises (MSMEs) across the state. The initiative was also accompanied by a capacity-building session designed to educate entrepreneurs on the procedures and requirements for accessing the fund.
The programme was unveiled during a townhall meeting held on Friday at the Prof. Eyo Ita House in Calabar. The event brought together business owners, financial institutions and government representatives to explore strategies for promoting enterprise development and economic growth.
Speaking during the engagement, the Director-General and Chief Executive Officer of the Cross River State Microfinance and Enterprise Development Agency (CRSMEDA), Mr. Great Ogban, described the initiative as a demonstration of Governor Bassey Otu's commitment to empowering local businesses through improved access to affordable financing.
Ogban noted that the administration is focused on eliminating obstacles that hinder the growth of small businesses while creating an enabling environment for entrepreneurs to succeed and contribute meaningfully to the state's economy.
Representing the Bank of Industry, the Divisional Head for the South-South region, Mr. Pacqueens Irabor, explained that the ₦2 billion fund is structured to provide accessible financing for businesses operating in various sectors of the economy.
According to him, beneficiaries will enjoy a repayment period of between three and five years at a concessionary interest rate of 7.5 percent, making the facility highly attractive to MSMEs. He added that the scheme offers both term loans for the purchase of production equipment and working capital loans to support daily business operations.
Irabor stated that enterprises in sectors such as agriculture, manufacturing, fashion, hospitality and other productive industries are eligible to benefit from the facility. He emphasized that while the fund can support the importation of production equipment, it does not cover the purchase of finished goods intended for retail sales.
He further outlined the requirements for accessing the loan, including the submission of a proforma invoice, an operational invoice and a 12-month bank statement from the business account.
For applicants seeking loans below ₦3 million, one guarantor is required. Those applying for amounts above ₦5 million must provide two guarantors, collateral in the form of a Certificate of Occupancy valued at twice the loan amount, and evidence that their business is registered as a limited liability company.
Addressing concerns over land documentation, the Director of the Land Bank at the Cross River Geographic Information Agency (CRGIA), Mr. Yemi Nelson, disclosed that the agency has streamlined its processes to make it easier for entrepreneurs to obtain the necessary documentation.
Nelson revealed that Certificates of Occupancy can now be processed within 60 days, a move expected to improve access to credit and encourage greater participation in the scheme.
Also speaking, the Managing Director of Cross River Microfinance Bank, Mr. Ayi Archibong, reiterated the bank's dedication to supporting MSMEs through customized financial products that enhance business growth and stimulate economic development.
The townhall concluded with interactive discussions, where participants sought clarification on loan eligibility, application procedures and opportunities available under the funding programme.
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