The Delta State Government, on Tuesday, signed a Memorandum of Understanding (MoU) with the Bank of Industry (BoI) for the management of a ₦1 billion revolving fund established to provide affordable loans to Micro, Small and Medium Enterprises (MSMEs) in the state.
A statement explained that the signing ceremony, which took place at Government House, Asaba, marked a significant step in the administration’s drive for inclusive growth and sustainable economic development under Governor Sheriff Oborevwori’s MORE Agenda.
Speaking at the event, Governor Oborevwori described the initiative as a major milestone in the state’s economic empowerment strategy, noting that the fund was approved by the State Executive Council in 2025 to address the persistent challenge of limited access to affordable finance faced by MSMEs.
“Today marks a remarkable moment in our administration’s unwavering commitment to job creation, inclusive growth, and sustainable economic development,” the Governor said.
He stressed that MSMEs remain the backbone of any strong economy, accounting for the highest employment rate and serving as critical drivers of economic growth.
According to him, the fund is designed to provide traders, artisans, agro-processors and small-scale manufacturers with access to capital at single-digit interest rates, enabling them to expand operations, create jobs and contribute meaningfully to the state’s economy.
“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,” Oborevwori said.
The Governor emphasised that the fund is structured as a revolving loan to ensure sustainability, stressing that recovery of loans granted under the scheme is mandatory to allow other eligible entrepreneurs to benefit.
“This ₦1 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 stated.
Oborevwori explained that the choice of the Bank of Industry to manage the fund was based on its proven track record as Nigeria’s foremost development finance institution, with strong credit appraisal systems and robust business support frameworks.
“Our partnership with the Bank of Industry goes beyond finance. It integrates vital business development and support services that entrepreneurs need to succeed and thrive in today’s highly competitive economy,” he said, expressing confidence in the bank’s ability to manage the fund transparently and efficiently.
Reflecting on previous empowerment initiatives, the Governor noted that while grants remain important, excessive reliance on them could undermine accountability.
“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,” he explained.
He clarified that the initiative would complement, rather than replace, existing empowerment programmes, assuring that grants and other support interventions would continue where necessary.
On the timing of the programme, Oborevwori disclosed that its launch was shifted from December to January to ensure optimal impact, noting that January is typically when entrepreneurs are focused on rebuilding and expanding their businesses for the year.
Looking ahead, the Governor said the ₦1 billion fund could be scaled up significantly if properly managed.
“If this fund demonstrates impact, there will be no limit to what we can do together. We can scale it to ₦10 billion, ₦20 billion or even ₦30 billion. This is a starting point,” he said.
Earlier, the Managing Director of the Bank of Industry, Dr. Olasupo Olusi, described the MoU as a strategic partnership aimed at expanding enterprise activities and unlocking sustainable economic growth in Delta State.
He said the revolving fund would strengthen MSMEs by improving access to affordable finance and deepening collaboration between the state government and Nigeria’s premier development finance institution.
According to Olusi, the initiative aligns with the Bank of Industry’s mandate of translating policy priorities into practical financing solutions that address business challenges across key sectors of the economy.
“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,” he said.
The BoI Managing Director commended the Delta State Government for its commitment to economic development, describing the MoU as a clear demonstration of the Oborevwori administration’s resolve to empower entrepreneurs and build a resilient private sector in the state.
