Asaba — Micro, Small and Medium Enterprises (MSMEs) in Delta State have been guaranteed a boost following the signing of a Memorandum of Understanding (MoU) between the Delta State Government and the Bank of Industry (BoI) for the management of a N1 billion revolving fund that the government released to the bank as revolving loan for the MSMEs.
In his remarks at the MoU signing ceremony at the Government House Asaba, yesterday, Oborevwori described the initiative as a major milestone in his administration's quest for inclusive growth and sustainable economic development under the administration's M.O.R.E development blueprint.
Oborevwori said, "Today marks a remarkable moment in our administration's unwavering commitment to job creation, inclusive growth, and sustainable economic development."
He disclosed that the revolving fund was approved by the State Executive Council (EXCO) in 2025 and aimed at addressing the persistent challenge of access to affordable finance by Micro, Small and Medium entrepreneurs in the state.
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Although it was initially planned for December, it was shifted to January to ensure maximum impact, Oborevwori revealed, expressing confidence that the initiative would go a long way in improving structural procedures and accountability.
According to the Governor, "MSMEs remain the backbone of any strong economy as they account for the highest employment rate," as well as serving as the key propeller of sustainable economic growth.
He explained that the financial window was deliberately structured to reduce the burden of high borrowing costs that often stifle entrepreneurial growth, while ensuring sustainability through a revolving loan system for the entrepreneurs.
"By providing our traders, artisans, agro-processors, and small-scale manufacturers with access to capital at single-digit interest rates, we are equipping them with the resources they need to expand their businesses, create jobs, and contribute meaningfully to our economy.
"This N1 billion is a revolving fund. Loans granted under this arrangement must be recovered so that other eligible entrepreneurs can also benefit.
"This responsibility is non-negotiable and must be discharged with the utmost diligence and integrity," he stressed.
Oborevwori explained that the Bank of Industry has a proven track record as Nigeria's foremost development finance institution with strong credit appraisal systems and business support frameworks, hence the confidential choice of the bank as managers of the fund.
"Our partnership with the Bank of Industry goes beyond finance," the governor stated.
He added: "It integrates vital business development and support services that entrepreneurs need to succeed and thrive in today's highly competitive economy."
On Delta State's history of empowerment programmes, he cautioned that though grants remain relevant, excessive reliance on them could undermine accountability.
Oborevwori said, "When you keep giving grants without structure, some beneficiaries may not value the funds. This loan-based model will instil financial discipline and help entrepreneurs appreciate the value of money, invest wisely and grow sustainably."
Nevertheless, he assured that the initiative would not replace existing empowerment schemes, saying that the government would continue to roll out grants and other support programmes where necessary.
"This MoU is another critical pillar of our broader economic empowerment strategy. It complements, rather than replaces, our ongoing interventions.
"January is when entrepreneurs are fully focused on rebuilding and expanding their businesses for the year," Oborevwori noted.
Looking ahead, he assured that the N1 billion could be significantly scaled up if properly managed.
"If this fund demonstrates impact, there will be no limit to what we can do together. We can scale it to N10 billion, N20 billion or even N30 billion. This is a starting point," the Governor declared.
He expressed confidence that the partnership with the Bank of Industry would help build a stronger, more resilient private sector capable of driving long-term prosperity for Delta State and its people.
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Speaking earlier, the Managing Director of the Bank of Industry, Dr. Olasupo Olusi, described the partnership as a strategic step towards expanding enterprise activities and unlocking sustainable economic growth in the state.
Olusi said that the N1 billion revolving fund provided by the Delta State Government would strengthen MSMEs by improving access to affordable finance and deepening collaboration between the state government and Nigeria's premier development finance institution.
The MoU initiative is in tandem with "BoI's mandate of translating policy priorities into practical financing solutions" that address business challenges across key sectors of the economy.
The BoI boss said, "As Nigeria's leading development finance institution, the Bank of Industry remains committed to working closely with governments and the private sector to create opportunities for businesses to innovate, create value and remain competitive."
