Job creation: Ondo State Government partners with micro finance banks
April 23, 2018
The Ondo State Government, has partnered with some micro finance banks to create jobs for the people of the state through loan facilities.
Mr Robert Omogbeminiyi, the Chairman of the Ondo State Micro Credit Agency (OSMA), made this disclosure at a meeting with the National Association of Micro Finance Banks (NAMB) on Monday in Akure.
Omogbeminiyi, who is also a Senior Special Assistant (SSA) to the State Governor on Micro Credit, Small and Medium Enterprises, said that the agency could not do it alone; hence, the need for the collaboration.
He added that OSMA allowed flowing financial resources to prospective beneficiaries, which was vital to job creation.
According to him, the best way to create job is to give financial empowerment to artisans, youths and people, who are enterprising, so that 90 per cent of the loan will meet its targets.
The OSMA chairman said that the involvement of micro finance banks would make any disbursed loans secure and beneficiaries of loans could have access to professional advice on their businesses.
“Henceforth, before we give loan, such applicant must convince us on his business targets and in collaboration with micro finance banks; there will be monitoring and evaluation team on regular basis.
“If you pay within one year, you are entitled to an increase of 100 per cent,” he said.
Earlier, Mr Joshua Folayemi, the General Manger of OSMA, noted that the agency’s statutory function was to assist those with good business initiatives but lacked the wherewithal to execute their plans.
Folayemi added that the agency’s loan disbursement interest rate was single digit.
He said that the major challenge facing the agency was the issue of recovering outstanding loans and subsequent ones; hence, the need to collaborate with MFBs because they have grassroots stand.
In his remarks, Mr Rogers Nwoke, the President of NAMB, said he was impressed that the state government was partnering with MFBs to discuss most effective ways to deliver micro credit facility to people.
Nwoke added that the empowerment was for economic growth, job creation and youth engagement, which he said a serious government would attach priority.
According to him, micro finance banks remain strong with improved operations, capable of registering people with Banks Verification Numbers (BVN) as at today.
“We think that this collaboration will succeed in taking government to the grassroots and reduce poverty significantly.
“It will eliminate bottlenecks because when government agency and private sector come together, things move faster.
“If handled as private sector institutions, there is effectiveness because the institutions are in business for sustainability and profit; this will facilitate the process more than when it is being done by government alone,” he stated.
Mr Mascot Ohizemokhai, the Chairman of the National Association of Micro Finance Banks, Ondo State chapter, said that the collaboration would fathom the way forward for micro credit effectiveness.
Ohizemokhai added that it would further empower the people of the state for economic development and emancipation.
He applauded the present executive members of OSMA, describing them as an evidence of professionalism and vibrancy. (NAN)
Edited by Ifeyinwa Okonkwo/Yemi Idris-Aduloju