Delta govt, BoI sign MoU for management of N1bn revolving fund

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 fund it released to the bank as revolving loan for Micro, Small and Medium Enterprises (MSMEs) in the State.

At signing ceremony held at the Government House, Asaba, Governor Sheriff Oborevwori said, “Today marks a remarkable moment in our administration’s unwavering commitment to job creation, inclusive growth, and sustainable economic development.”

He disclosed 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 MSMEs.

Read also: BoI partners LFZ to accelerate development of MSME

“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”.

He explained that 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 stated 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.

“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”, he said.

The governor 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”, Governor 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.

On the timing of the programme, the Governor disclosed that although it was initially planned for December but was shifted to January to ensure maximum impact..

Thus, he assured that the ₦1 billion fund could be significantly scaled up to even N30 billion  if properly managed.

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.

Read also: BOI, NCGC launch N10bn loan scheme to empower women-owned businesses

Earlier, Olasupo Olusi, Managing Director of the Bank of Industry, 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 MSMEs by improving access to affordable finance and deepening collaboration between the state government and Nigeria’s premier development finance institution.

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, he said, even as he appreciated the State Government for the commitment to economic development.

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