In a major push to strengthen small businesses and stimulate job creation, 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 loan fund targeted at Micro, Small and Medium Enterprises (MSMEs) across the state.
The MoU, signed at Government House, Asaba, formalises the release of the fund to the Bank of Industry, which will administer it as low-interest loans to eligible entrepreneurs, artisans, traders, agro-processors and small-scale manufacturers in Delta State.
Governor Rt. Hon. Sheriff Oborevwori, who presided over the signing ceremony, described the initiative as a critical pillar of his administration’s MORE Agenda, aimed at promoting inclusive growth, expanding economic opportunities and building a sustainable private sector.
According to the governor, the fund—approved by the State Executive Council in 2025—was designed to tackle the long-standing challenge of limited access to affordable finance faced by MSMEs, which he described as the backbone of any thriving economy.
“MSMEs account for the highest employment rate and remain key drivers of economic growth. By giving them access to capital at single-digit interest rates, we are empowering them to expand their businesses, create jobs and contribute meaningfully to the state’s economy,” Oborevwori said.
He explained that the loan scheme was deliberately structured as a revolving fund to ensure sustainability, stressing that beneficiaries must repay their loans promptly to allow other entrepreneurs access to the fund.
“This ₦1 billion is not a grant; it is a revolving fund. Recovery is non-negotiable. The success of this initiative depends on transparency, discipline and integrity in its management,” the governor stated.
Oborevwori said the decision to partner with the Bank of Industry was based on its reputation as Nigeria’s foremost development finance institution, with strong credit appraisal systems and business support structures.
“Our partnership with BoI goes beyond disbursing loans. It includes business development support that MSMEs need to survive and thrive in a competitive economy. We are confident in the bank’s capacity to manage this fund efficiently and transparently,” he added.
Reflecting on past empowerment programmes, the governor noted that while grants remain relevant, overreliance on them could weaken accountability.
“When funds are given without structure, they are sometimes not valued. This loan-based approach will instil financial discipline, encourage wise investment and promote sustainable growth,” he explained, adding that grants and other support schemes would continue alongside the loan programme.
He further disclosed that although the programme was initially planned for December, it was shifted to January to ensure better impact.
“January is when entrepreneurs are focused on rebuilding and expanding their businesses for the year. The timing is strategic,” Oborevwori said.
Looking ahead, the governor assured that the fund could be significantly expanded if properly managed.
“This ₦1 billion is just the beginning. If the impact is evident, we can scale it to ₦10 billion, ₦20 billion or even ₦30 billion. The possibilities are limitless,” he said.
Earlier, the Managing Director of the Bank of Industry, Dr. Olasupo Olusi, described the MoU as a strategic partnership that would unlock enterprise growth and deepen economic development in Delta State.
He said the revolving fund would improve access to affordable finance for MSMEs while strengthening collaboration between the state government and Nigeria’s leading development finance institution.
According to Olusi, the initiative aligns with the Bank of Industry’s mandate of translating government policies into practical financing solutions that address business challenges across key sectors.
“As Nigeria’s premier development finance institution, we remain committed to working with governments and the private sector to support innovation, value creation and competitiveness,” he said.
The BoI managing director commended the Delta State Government for its commitment to economic empowerment, describing the MoU as a clear demonstration of Governor Oborevwori’s resolve to build a resilient and inclusive economy.
