For many small business owners in Delta State, getting money to grow their businesses has remained one of the toughest challenges.
From fashion designers and food vendors to small manufacturers and shop owners, many entrepreneurs say their businesses could expand if they had access to affordable loans.
Now, the Delta State Government says it is stepping in with a ₦1 billion funding programme aimed at helping small businesses survive and grow.
The initiative, introduced by the state’s Ministry of Trade and Investment in partnership with the Bank of Industry, is designed to provide financial support to existing small and medium-scale businesses across the state.
Officials say the programme is part of a broader plan to stimulate economic growth, strengthen entrepreneurship and create more jobs.
Why the Government Created the ₦1bn Fund
The Commissioner for Trade and Investment, Samuel Oligida, said the fund was created because many entrepreneurs struggle to access capital.
Speaking through the Deputy Director of Industry SMEs at the ministry, Tejiri Efe, he explained that small businesses play a critical role in job creation.
“The government alone cannot employ everyone,” Efe said in Asaba.
“One of the most effective ways to grow the economy is by supporting businesses so they can expand and create jobs.”
According to him, the funding programme is meant to remove one of the biggest barriers entrepreneurs face — lack of access to finance.
Who Can Access the Loans
Under the scheme, entrepreneurs who already run businesses can apply for funding either online or through the Ministry of Trade and Investment or the Bank of Industry.
However, the programme mainly targets existing businesses, not people who are just starting.
“We do not give loans to Greenfield businesses, which are newly created businesses,” Efe explained.
“Our focus is on Brownfield businesses — businesses that already exist and have operational experience.”
He said entrepreneurs with experience are more likely to use the funds effectively and repay the loans.
Eligible businesses can access loans ranging from ₦20 million to ₦300 million, depending on the size and capacity of the enterprise.
Before any loan is approved, government officials will carry out pre-loan assessments, including visits to business locations to confirm that the companies are genuine.
Monitoring will also continue after the loans are disbursed.
“This is not a situation where loans are given and nobody checks what happens afterwards,” Efe said.
“We will monitor the businesses before and after the funds are released.”
Officials say the monitoring process is meant to ensure the loans are used strictly for business expansion and not diverted for personal purposes.
A Revolving Loan System
The ₦1 billion fund will operate as a revolving loan scheme, meaning beneficiaries must repay the loans so that other entrepreneurs can also benefit.
“If people fail to repay the loans, the programme will collapse because the funds are meant to revolve and support other businesses,” Efe said.
Other Support Programmes for Small Businesses
Beyond the ₦1 billion funding programme, the Delta State Government says several other initiatives exist to support entrepreneurs.
For example, a microcredit scheme currently provides loans of about ₦5 million to smaller businesses.
Other intervention programmes also provide financing between ₦5 million and ₦10 million, depending on the type of business.
“These programmes ensure that every category of entrepreneur has access to some form of financial support,” Efe said.
He added that the government previously provided grants of up to ₦500,000 to support startup businesses.
Under a new approach, some entrepreneurs may receive loans first. If they repay responsibly, the government may later convert part of the loan into a grant.
“If a business owner shows commitment and repays faithfully, the facility may eventually be converted into a grant,” he said.
DESMEDA’s Efforts to Support Entrepreneurs
The Delta State Micro, Small and Medium Enterprises Development Agency also continues to support business owners across the state through various programmes.
The agency’s Executive Secretary, Godwin Adolor, speaking through the Director of SMEs, Robinson Akporvwera, said the agency is committed to helping entrepreneurs grow their businesses.
According to him, DESMEDA previously participated in the Nigeria COVID-19 Action Recovery and Economic Stimulus, which provided financial support to businesses affected by the COVID-19 pandemic.
More than 3,000 entrepreneurs reportedly received grants ranging from ₦150,000 to ₦250,000 under the programme.
The first phase has already been completed, while discussions are ongoing for a second phase known as NG-CARES 2.0.
“We are waiting for the federal authorities to finalise the process so that the next phase can begin,” Akporvwera said.
DESMEDA also implemented a Creative Industry Empowerment Programme, where entrepreneurs — particularly women in creative businesses — received financial support of about ₦150,000 each.
In addition, the agency organised the Delta State MSME Summit, held at the Maryam Babagida Leisure Park Conference Centre in December last year.
The event brought together entrepreneurs, development partners and financial institutions to discuss strategies for strengthening small businesses.
Akporvwera acknowledged that access to finance remains one of the biggest obstacles facing entrepreneurs.
However, he expressed optimism that programmes like the ₦1 billion fund will help strengthen the small business sector.
“With the right support and policies, MSMEs will continue to play a major role in job creation and economic development in Delta State,” he said.
