In a needed boost to small and medium-sized enterprises (SMEs) in Rivers State during this prevailing harsh economic reality, the Rivers State Microfinance Agency (RIMA) has disbursed N800 million to 1,387 businesses through a microfinance credit scheme. The initiative, in collaboration with the Bank of Industry (BoI), aims to uplift SMEs and create wealth across the Southern state.
According to Pastor Jonathan Tobin, Managing Director of RIMA, the microfinance scheme has recorded substantial success, particularly among female entrepreneurs and individuals living with disabilities. Out of the total beneficiaries, 818 women have accessed N469.5 million, accounting for 58.7% of the disbursed funds. Additionally, 13 people with disabilities have benefited from the scheme, receiving N5 million.
Notably, the initiative has progressed through four tranches of funding, each involving the disbursement of N200 million. The BoI, responsible for vetting applicants, ensures due diligence before releasing funds. This careful approach has helped to minimize risks and ensure that the funds reach genuine entrepreneurs.
However, the scheme has not been without challenges. RIMA has encountered 1,600 cases of impersonation, where applicants attempted to claim loans using other people’s business identities. To combat such fraudulent activities, RIMA has implemented stringent verification processes, including unexpected visits to businesses.
Despite these challenges, the microfinance scheme has made a significant impact on the state’s economy. Beneficiaries have reported increased productivity, job creation, and improved standards of living. The scheme has also encouraged entrepreneurship and innovation, particularly among young people and women.
Looking ahead, the scheme continues to support businesses seeking larger loans. BoI has already disbursed N119.8 million to eight customers, with another 17 applicants set to receive N217.4 million shortly. Pastor Tobin urged the people of Rivers State to take advantage of the microfinance credit scheme and ensure timely repayment, emphasizing its crucial role in supporting local businesses and fostering economic growth.
It bears mentioning that this initiative is a testament to the state government’s commitment to empowering SMEs and promoting economic development.
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In an interview, one of the beneficiaries, Mrs. Blessing Okoro, expressed her gratitude to the Rivers State government and RIMA for the opportunity. “This loan has helped me to expand my business and create jobs for others. I encourage others to take advantage of this scheme and make the most of it.”
It is worth noting that the success of the microfinance scheme has also attracted attention from other states and organizations, seeking to replicate the model. As Rivers State continues to lead the way in SME development, those close to the matter insist it is clear that this initiative will have a lasting impact on the state’s economy and its people.
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