The Federal Government on Sunday announced plans to empower at least two million traders with collateral-free credit between now and the end of the year in furtherance of its grassroots empowerment programmes.
The funding support, which is coming under its Government Enterprise and Empowerment Programme (GEEP), called the TraderMoni, aims at further consolidating on the nation’s financial inclusion agenda for all Nigerians irrespective their socio-economic backgrounds.
TraderMoni was designed to help petty traders expand their trade through the provision of collateral free loans of N10,000. The loans are repayable within a period of six months.
“Under the scheme, beneficiaries can get access to facilities ranging from between N15,000 to N50,000 when they repay N10,000 within the stipulated time period.
To facilitate seamless identification of beneficiaries and disbursement, the Bank of Industry, which is implementing the new scheme has engaged more than 4,000 enumeration agents nationwide.
Giving the hint in a statement, the Senior Special Assistant to the President on Media and Publicity, Office of the Vice President, Laolu Akande said that the scheme would enable at least 30,000 beneficiaries in each state and the Federal Capital Territory.
According to him, the two million traders being considered under the scheme will be attained on or before the end of this year, with petty traders in Lagos, Kano and Abia States being targeted as the first set of beneficiaries to access the collateral-free loans.
He clarified: “In addition to the 30,000 loans per State, States with larger populations like Lagos and Kano are expected to get more than 30,000 loans. Across the country, especially in the pilot states, about 500,000 potential beneficiaries have so far been enumerated.
“In order to identify the beneficiaries, no less 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 a period of 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 period.
“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”, Akande added.
The Presidential aide noted further that government was also aware of the fact that many of the petty traders don’t have what the commercial banks require to grant them loans but that the administration was keen to ensure that such traders were able to build their businesses and grow.
Noting that with the launching of the TraderMoni in Lagos thousands of beneficiaries had been privileged to access the loans, Akande stated that the scheme would soon be taken to other states in the country, with Abia and Kano states to be reached very soon.
He stated that some of the beneficiaries had commended the government for the initiative in view of its value addition to their enterprises.
