Governor Monday Okpebholo of Edo State has launched a ₦1 billion interest-free loan initiative to empower farmers and traders across the state. The scheme, inaugurated on Friday in Benin City, is set to benefit over 5,000 residents in its initial phase.
According to the governor, the program is designed to inject fresh energy into the state’s informal economy by providing access to much-needed capital.
Mr Okpebholo said the loans would help boost local production, encourage trade, and reduce poverty in rural and semi-urban communities.
He added that the initiative was a direct fulfilment of one of his key campaign promises and expressed satisfaction in launching a program he believes will directly uplift grassroots businesses.
“I wanted to ensure this money reaches the right people. That’s the reason for today’s gathering,” Okpebholo said during the launch.
The governor who took office in November 2024 pointed to past government loan schemes that failed due to lack of transparency and accountability.
Okpebholo said this new effort would be closely monitored, with strong oversight measures in place to ensure only genuine business owners benefit. He also encouraged those who may be left out to report to him directly, promising fairness and inclusiveness in future phases of the program.
Loan Terms Aim to Encourage Business Stability and Growth
The state’s Commissioner for Finance, Emmanuel Okoebor, explained that the loan would play a major role in reducing poverty by enabling residents to build or expand their businesses.
He said the government intends to strengthen rural economies, create new jobs, and encourage local innovation through the loan.
Okoebor described the loan structure as practical and supportive. Each beneficiary will receive between ₦200,000 and ₦500,000, depending on the size and type of their business. He added that repayment will be spread over 12 months, including a one-month grace period.
This moratorium is to give small businesses time to stabilise before repayments begin.
“This time, you repay exactly what you borrowed, no interest attached,” he said, stressing that the loans are interest-free and strictly for business growth. Okoebor praised Governor Okpebholo’s rapid achievements since taking office. He mentioned infrastructure development, improvements in education, and the launch of new employment initiatives.
The interest-free loan is expected to strengthen market confidence, encourage more people to venture into entrepreneurship, and reduce reliance on informal lending systems that often charge high interest rates.
By directly funding micro-enterprises, the government hopes to raise living standards in the State and build a stronger economic base at the community level.
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