Delta State Government, Tuesday signed a Memorandum of Understanding (MoU) with the Bank of Industry (BoI) for the management of a ₦1 billion revolving fund it released to the bank as revolving loan for Micro, Small and Medium Enterprises (MSMEs) in the State.
Speaking during the signing ceremony at Government House, Asaba, the Governor, Rt. Hon. Sheriff Oborevwori described the initiative as a major milestone in his administration’s quest for inclusive growth and sustainable economic development under the MORE Agenda of his administration.
“Today marks a remarkable moment in our administration’s unwavering commitment to job creation, inclusive growth, and sustainable economic development,” Oborevwori said, noting that the fund was approved by the State Executive Council in 2025 and designed to address the long-standing challenge of access to affordable finance by Micro, Small and Medium entrepreneurs.
He emphasised that MSMEs remain the backbone of any strong economy, accounting for the highest employment rate and serving as key drivers of economic growth.
Oborevwori said: “By providing our traders, artisans, agro-processors and small-scale manufacturers with access to capital at single-digit interest rates, we are equipping them with the resources they need to expand their businesses, create jobs and contribute meaningfully to our economy”.
According to him, the financial window was deliberately structured to reduce the burden of high borrowing costs that often stifle entrepreneurial growth, while ensuring sustainability through a revolving loan system for the entrepreneurs.
“This N1 Billion is a revolving fund. Loans granted under this arrangement must be recovered so that other eligible entrepreneurs can also benefit. This responsibility is non-negotiable and must be discharged with the utmost diligence and integrity,” he stressed.
Governor Oborevwori explained that the choice of the Bank of Industry as managers of the fund was informed by its proven track record as Nigeria’s foremost development finance institution, with strong credit appraisal systems and business support frameworks.
He said; “our partnership with the Bank of Industry goes beyond finance. It integrates vital business development and support services that entrepreneurs need to succeed and thrive in today’s highly competitive economy,” adding that he was confident in the Bank’s capacity to manage the fund transparently and efficiently.
The Governor also reflected on the state’s long history of empowerment programmes, noting that while grants remain relevant, excessive reliance on them could undermine accountability.
“When you keep giving grants without structure, some beneficiaries may not value the funds. This loan-based model will instil financial discipline and help entrepreneurs appreciate the value of money, invest wisely and grow sustainably,” Oborevwori explained.
He clarified that the initiative would not replace existing empowerment schemes, assuring that the government would continue to roll out grants and other support programmes where necessary.
“This MoU is another critical pillar of our broader economic empowerment strategy. It complements, rather than replaces, our ongoing interventions,” he said.
On the timing of the programme, the Governor disclosed that although it was initially planned for December, it was shifted to January to ensure maximum impact.
“January is when entrepreneurs are fully focused on rebuilding and expanding their businesses for the year,” he noted.
Looking ahead, he assured that the ₦1 billion fund could be significantly scaled up if properly managed.
“If this fund demonstrates impact, there will be no limit to what we can do together. We can scale it to ₦10 billion, ₦20 billion or even ₦30 billion. This is a starting point,” the Governor declared.
He expressed confidence that the partnership with the Bank of Industry would help build a stronger, more resilient private sector capable of driving long-term prosperity for Delta State and its people.
Speaking earlier, the Managing Director of the Bank of Industry, Dr. Olasupo Olusi described the partnership as a strategic step towards expanding enterprise activities and unlocking sustainable economic growth in the state.
He said the ₦1 billion revolving fund provided by the Delta State Government, would strengthen Micro, Small and Medium Enterprises (MSMEs) by improving access to affordable finance and deepening collaboration between the state government and Nigeria’s premier development finance institution.
According to him, the initiative aligns with the Bank of Industry’s mandate of translating policy priorities into practical financing solutions that address business challenges across key sectors of the economy.
“As Nigeria’s leading development finance institution, the Bank of Industry remains committed to working closely with governments and the private sector to create opportunities for businesses to innovate, create value and remain competitive,” he said.
The Managing Director expressed appreciation to the Delta State Government for its commitment to economic development, describing the MoU as a clear demonstration of the administration.
PRESS UNIT,
GOVT.HOUSE, ASABA
