Business

2M Nigerians to Get Collateral Free Loans

Published

6 years ago

August 14, 2018

2M Nigerians to Get Collateral Free Loans

The President Muhammadu Buhari administration has launched an initiative under the Government Enterprise and Empowerment Programme (GEEP), called the TraderMoni.

It is to boost its financial inclusion agenda for Nigerians, regardless of social class and economic status.

The initiative will empower two million petty traders between now and the end of the year.

The scheme, which was launched last week in Lagos, will grant a minimum of 30,000 loans in each state and the Federal Capital Territory.

Two million marks are expected to be attained on or before the end of the year, with petty traders in Lagos, Kano and Abia states set to be the first round of beneficiaries to draw the collateral free loans.

A statement by the Senior Special Assistant to Acting President Yemi Osinbajo, Laolu Akande, said in addition to the 30,000 loans per state, states with larger population, such as Lagos and Kano, are expected to get more than 30,000 loans.

He said: “Across the country, especially in the pilot states, about 500,000 potential beneficiaries have been enumerated.

“In order to identify the beneficiaries, no fewer than 4,000 enumeration agents have been engaged by the Bank of Industry, which is deploying the new scheme.

“TraderMoni is designed to help petty traders expand their trade through the provision of collateral free loans of N10,000. The loans are repayable within six months.

“Under the scheme, beneficiaries can get access to a higher facility, ranging from N15,000 to N50,000 when they repay N10,000 within the stipulated time.

“The goal of the Buhari administration is to use the TraderMoni to take financial inclusion down to the grassroots, the bottom of the ladder, considering the contribution of petty traders to economic development. The Federal Government is also aware of the fact that many of the petty traders don’t have what the commercial banks require to grant them loans.

“This administration is keen to ensure that such traders at that level are able to build their businesses and grow.

“TraderMoni was launched last Tuesday in five markets in Lagos State, with tens of thousands beneficiaries already.”

The Lagos markets reached, he said, are Mushin, Ikotun, Agege, Ketu and Abule Egba.

“Beneficiaries are already heaping praise on the Buhari administration for this initiative that will improve their businesses.

“A trader in one of the Lagos markets, Anna Enwerem, thanked President Buhari for the initiatives. The trader said: ‘I sell clothes. This N10,000 will do a lot for me and my children. I like this programme so much. I will pay the loan before six months. Before, I didn’t believe it, but now that I have received my money, I believe.’

“Mrs. Mufiat Adewumi, a market leader in Lagos, said it will help ordinary Nigerians, who cannot have access to commercial banks’ credit facilities because they don’t have collateral.

“We are happy about the TraderMoni because this is what we have been expecting for long, that the government should assist the masses, especially the traders. We thank the Federal Government so much.”

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Business

New Website Unveiled by FG for Pay-Later CNG Conversion to Cut Transport Costs

Published

3 days ago

October 10, 2024

Yetunde Olugbenga

The federal government has unveiled a website that offers a pay-later option for commercial and private car owners looking to convert their petrol-powered vehicles to Compressed Natural Gas (CNG).

This was in response to the incessant increase in transportation fares following the removal of the fuel subsidy.

According to the Presidential Compressed Natural Gas Initiative (PCNGi) the initiative will help ease transportation costs and encourage more transporters to embrace CNG.

In a post on X, the National Orientation Agency (NOA) revealed that this initiative ensures a hassle-free experience for CNG users through an easy online application and a quick approval process.

“Switching to Compressed Natural Gas (CNG) is now more accessible than ever. With flexible payment plans tailored to fit your budget, transitioning from petrol to CNG has never been smoother or more affordable. These payment options allow you to convert your vehicle now and pay later with affordable monthly installments at competitive rates.” NOA stated.

The installment payment option aims to achieve the federal government’s projection of a 30-40% fare reduction as more motorists adopt this initiative.

In addition to the distribution of 2,000 CNG-powered tricycles among youths in the transportation sector across Nigeria, the pay-later option is intended to encourage more people to adopt CNG, thereby providing affordable mobility options.

Business

Nigerians Fear Increase in Fake Products as NAFDAC Officials Commence Indefinite Nationwide Strike

Published

5 days ago

October 8, 2024

Ugwoke Ogbodo

There are indications that fake producers of consumables and other items across the country may have a field day following an industrial action embarked upon by workers of the National Agency for Food and Drug Administration and Control (NAFDAC).

Investors King gathered that the nationwide strike which started on Monday is indefinite and nationwide.

The decision of the staff of the agency to down tools followed the expiration of a 14-day ultimatum issued to their management.

The decision to shun work was confirmed after a congress of NAFDAC staff convened on Friday, October 4, 2024 over unresolved issues.

The striking workers, under the directive of the Senior Staff Association of Statutory Corporations and Government-Owned Companies (SSASCGOC) have been instructed to withdraw all services and vacate offices.

They were also ordered to remove personal belongings as the strike began.

The demands of the staff include a review and re-evaluation of the 2024 promotion examination results, which currently reflect a pass rate of just 35%.

The union is pushing for a minimum benchmark of 80% for this year and future exams. Another key demand is the settlement of salary arrears for employees hired in 2022 among others

In a statement signed by Secretary of the Association, Ejor Michael, the union accused NAFDAC management of ignoring their grievances, calling the inaction insufferable.

The staff have vowed to continue the strike until all demands outlined in their communiqué are met.

NAFDAC, which plays a critical role in regulating Nigeria’s food, drug, and pharmaceutical industries, is expected to face significant operational disruptions as a result of the industrial action.

Before now, there had been public outcry over the increase in fake products as Nigerians called out the agency and tasked it to be more proactive.

They expressed fear that there is a tendency that manufacturers of fake products would have ample opportunities to saturate the markets with dangerous products as those who would tackle them are now on strike.

Business

27.75% Interest Rate Painful but Necessary – CBN Gov Cardoso

Published

6 days ago

October 7, 2024

Bassey Marshall

The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, has described the recent increase in the Monetary Policy Rate (MPR) to 27.25% as a painful but necessary move.

Cardoso made this known in Lagos, during his address to members of the Harvard Club of Nigeria on the topic: “Leadership in Challenging Times: Restoring Credibility, Building Trust, and Containing Inflation”.

Investors King reported that on September 24, 2024, the apex bank announced another increase in its Monetary Policy Rate (MPR) from 26.75 percent to 27.25%

The decision was reached during the Monetary Policy Committee (MPC) meeting chaired by the CBN Governor.

However, while delivering his speech in Lagos, the CBN boss sympathized with borrowers highlighting the pain the new interest rate will heap on them.

According to Cardoso, the bank’s decision to raise the interest rate was a bold move to reduce excess money in circulation and control inflation effectively.

He emphasized the need for Nigeria to look beyond short-term comfort and strive to secure long-term stability.

Cardoso reaffirmed the CBN’s commitment to rebuilding public trust in the institution.

He said, “Our decision to raise the Monetary Policy Rate (MPR) to 27.25% was a bold move. Higher interest rates, while painful for borrowers, are necessary to curb excess money in circulation and control inflation.

“Leadership is about making hard choices to secure long-term stability over short-term comfort in moments like these

“Leading through challenging times means avoiding the temptation to take on too many initiatives. The Central Bank must focus on its core mandate—price stability. It is easy to become distracted by various political and economic pressures, but as a leader, one must prioritise.”

“Trust is the currency of central banking. If the public loses trust in the institution, the efficacy of its policies diminishes.

“Our decision to implement the Electronic Foreign Exchange Matching System (EFEMS) is rooted in this understanding.

“By enhancing transparency and providing more accurate oversight of forex transactions, we send a strong signal that the CBN is serious about fair and efficient markets.”

Meanwhile, The Manufacturers Association of Nigeria (MAN) had criticized the interest rate hike by the Central Bank of Nigeria (CBN).

The Director General of MAN, Mr. Segun Ajayi-Kadir, made the association’s position known in a statement titled ‘Reaction of MAN on the Report of MPC Meeting on September 23-24, 2024’.

MAN noted that with the higher interest rate, the cost of production will increase.

According to him, the impact of the increase goes beyond the manufacturers, it will stifle investment opportunities.