The administrative costs of microfinance banks (MFB) under the Nigerian Agency for the Development of Small and Medium Enterprises (SMEDANOne )’s Local Government, One Product (OLOP) scheme have been raised increased to 8%.
During her OLOP stakeholder meeting on Thursday in Abuja, Ms Safiya Ballah, Director of Special Tasks Department, SMEDAN, stated.
SMEDAN’s flagship initiative, OLOP, encourages the development of at least one product identified by a local government area (LGA) in Nigeria, while also boosting micro, small, and medium businesses (MSME).
The program, which provides 70% interest-free loans and 30% subsidies, adds value to these selected raw materials by transforming them into a branded and certified product with increased market potential (including export).
SMEDAN charged MFBs 5% as a service charge for providing services to cooperative banks (beneficiaries) under the OLOP scheme.
Ballah explained that the 8% increase was part of his reform plan to improve the OLOP program’s effectiveness and influence in the country.
SMEDAN’s attention was brought to the initiative, she added, because of the challenges beneficiaries encounter in obtaining finances and intervention.
She also criticized most businesses’ incapacity to obtain accreditation from relevant agencies such as the National Agency for Food and Drug Administration and the Nigerian Control and Standards Organization, as well as membership in the OLOP concept.
Other OLOP reform projects for effective execution by stakeholders, according to the Director, include encouraging beneficiaries to join professional groups through membership registration.
Candidate companies, according to her, must have proof of a bank transaction (corporate account), as well as a business plan demonstrating empowerment status and an OLOP expansion strategy that is assessed. at regular intervals.
Techniques for beneficiaries, information technology promotion, and exposing beneficiaries to the necessity of using ICT to operate their enterprises in order to acquire both local and international funding are among the others.
As part of the reform agenda, she stated that individualized training of cooperative societies, as well as annual OLOP product exhibitions, are necessary for an effective implementation of OLOP.
She stated that loan repayment was very significant and necessary, and that it had introduced an innovation in loan repayment.
Mr. Levi Anyikwa, Deputy Director, SMEDAN’s Special Tasks Department, also invited all stakeholders to bring useful information and ideas to the conference in order to enrich the OLOP program’s continuous reform.
He said that the initiative had undergone numerous repackagings, with the cooperation of the Japan International Cooperation Agency in particular (JICA).
He stated that the conference would guarantee that all program stakeholders are on the same page when it comes to implementation. (NOPE)