In a strategic move to stimulate the local economy, the Delta State Government on Tuesday officially signed a Memorandum of Understanding (MoU) with the Bank of Industry (BoI) to manage a ₦1 billion revolving loan fund dedicated to Micro, Small, and Medium Enterprises (MSMEs) in the state.
The ceremony, held at the Government House in Asaba, underscores Governor Sheriff Oborevwori’s commitment to his MORE Agenda, specifically focusing on job creation and poverty alleviation through sustainable economic frameworks.
Speaking at the event, Governor Oborevwori noted that while his administration continues to provide grants, this new loan-based model is designed to instil financial discipline among entrepreneurs.
“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,” the Governor stated.
He emphasized that the single-digit interest rate attached to the fund is a deliberate attempt to shield small business owners from the “stifling” costs of traditional commercial borrowing.
The Governor was clear on the expectations for beneficiaries: the ₦1 billion is not a “national cake” but a revolving resource. He stressed that for the program to reach more Deltans, the initial beneficiaries must repay their loans diligently.
“This responsibility is non-negotiable and must be discharged with the utmost diligence and integrity,” he warned, adding that if the initial ₦1 billion is managed successfully, the state is prepared to scale the fund to ₦10 billion or even ₦30 billion.
The choice of BoI as the fund manager was based on the institution’s “proven track record” in credit appraisal. Governor Oborevwori expressed confidence that the partnership would provide MSMEs with more than just cash, but also the business support services required to thrive in a competitive market.
Earlier, the Managing Director of BoI, Dr. Olasupo Olusi, lauded the Delta State Government for the initiative. He noted that the bank remains committed to translating policy priorities into practical financing solutions that address the real-world challenges faced by Nigerian businesses.
The fund, which was approved by the State Executive Council in 2025, was intentionally launched in January 2026 to coincide with the period when business owners are “fully focused on rebuilding and expanding” for the new year.