0
0
• Approves release of N1 billion loan for Osun SMEs
• Launches 3.4Billion Revolving Cooperative Loan Scheme
• Disburses N500m Plus Social Safety Funds
By Sola Isola
Osun State Governor, Senator Ademola Adeleke is rewriting the history of Osun State that is believed largely to be a civil service state, this is as he has approved the release of a N1 billion revolving loan scheme to support small and medium-sized enterprises (SMEs) in the state.
In an event members of the cooperative movement described as the first of its kind since the creation of Osun state, Executive Secretary of the Federation of Osun Cooperative Union, Wasiu Bello said the previous administration diverted cooperative savings, leaving the societies in crisis and financial challenges.
Expressing deep appreciation that Governor Adeleke is repaying the diverted savings, the leader of the cooperators applauded the creation of the Ministry of Cooperatives and Empowerment, calling it the first of its kind in Nigeria.
Declaring the State Cooperative Summit opened, the Governor who was conferred with an award announced far reaching reforms including the allocation of One Billion Naira revolving loan scheme through the cooperative and micro-credit agency .
The Governor narrated his reform agenda further: “As we plan to inject huge fund, we must work on the following areas to inspire confidence and sustain continuous government financial contributions.
“The Cooperative law is due for review: After enactment dating back to first or second republic, an amendment of the act is necessary to take into account modern trends and practices;
“Upgrading the operational standard of the cooperative movement: We all must admit that the operational standard among the cooperative platform is very low and substandard. The old laws are hardly complied with and the practices across the societies are quite below any confidence inspiring rating;
“The need to review compliance with democratic governance: The cooperative society mostly lacks democratic governance. In other words, there is no regular election of leaders. This blocks innovation and frustrates the potentials of the grassroot financial platform;
“Crisis of Accountability and transparency: The greatest challenge is the low level of transparency and accountability in cooperative operations. The rot is deep, we must all admit. The external and internal auditors are mostly compromised and managers are mostly ill equipped. We must reform to achieve the potential of the movement”, the Governor noted.
Directing the Commissioner for Cooperative and Empowerment to submit a reform plan for execution, the Governor announced that his administration has resolved to invest a billion naira in the state cooperative movement to create a pool of revolving loans at single digit interest rate through the cooperatives and micro credit agency.
He informed the gathering that he has approved the complete rehabilitation of the Cooperative College, Odeomu, directing the Commissioner to take necessary action to implement the approval.
“Because of the importance of cooperative movement to the local economy, we may also consider the possibility of cooperative studies becoming a programme of study at polytechnics and universities in the state.
“The executive arm will also consider sponsoring an executive bill for the review of the cooperative law. Let us make the operating law conform with realities of the 21st century”, he noted while declaring the summit open.
In another development, Governor Adeleke has stated his administration is targeting at supporting more than 45,000 Small and Medium Scale “SMEs” businesses in the state in its bid to boost the local economy and increase its GDP
The Governor stated this at the launching of the “State Special Ward Level Cooperative Loan Programme”, with the aim of providing N3.436 billion revolving loan to cooperative societies in the state.
While launching the scheme in Osogbo, Ilesha and Iwo, Governor Adeleke said the loan would be provided in three phases of N1.145 billion per phase, with a total target of 45,816 beneficiaries.
At the launching, Governor Adeleke said, “As a government that fulfils electoral promises, our gathering here is to ensure loans of various categories are disbursed to registered cooperative societies to grow their business and expand the state economy.
“I want to reconfirm to our people again that this government is committed to boosting the local economy, relieving the pains of the people and deepening the state GDP.
“We are operationalising 332 cooperatives in each of the 332 wards in Osun State and our target is to have 46 beneficiaries per ward, making a total of 15,272 beneficiaries,” he said.
He emphasized that the loan is meant for both men and women traders and artisans, and that the phase two and three of the programme would have the same number of beneficiaries and it is in furtherance to his administration commitment to revitalize the Cooperative system and support the SMEs in the state
Speaking on behalf of all the cooperatives societies at the Iwo centre, Chief Awotoro Oyejide appreciated the Governor for recognizing local cooperatives as an important economic driver in the state.
“We express our deepest gratitude on behalf of the cooperative societies in our region for the Governor’s Loan Initiative and the unwavering support extended to us. Your commitment to fostering economic growth and development will truly transform our local communities.
“Your visionary approach, coupled with your dedication to promoting inclusive growth will effectively address the financial limitations faced by our cooperative societies. The provision of affordable credit facilities will allow us to undertake numerous initiatives, ranging from boosting agricultural productivity to facilitating small-scale enterprises, thereby empowering our members to become self-reliant and contribute meaningfully to the local economy,” He said.
Governor Adeleke emphasized that the condition to access the loan is that each beneficiary must belong to a trade association with a letter of character attestation to be provided by each beneficiary from his or her trade association before disbursement.
He urged the beneficiaries to put the fund into productive business in a bid to achieve his administration goal of wiping out poverty from the state and supporting small-scale businesses.
Meanwhile, Governor Adeleke had earlier disbursed a total sum of Five Hundred and Eighty Eight Million, One Hundred and Five Thousand Naira only (N588, 105,000.00) to 19,720 beneficiaries of Imole Osun Cash Grant Scheme.
An additional Sixty Thousand identified poor segment of the population are to receive ATMs of their bank accounts to facilitate their access to such grants.
In continuation of his administration’s efforts to cushion the effects of the hard time, Governor Adeleke said the beneficiaries are mined from the State Social Register for Poor and Vulnerable Households domiciled in the State Operation Coordinating Unit, National Social Safety Net Project in the Ministry of Economic Planning, Budget and Development.
The Governor represented by the Head of Service, Mr Ayanleye Aina reviewed the many programmes of his administration to attend to the needs of the poor, the weak and the under-privileged said the administration has invested heavily in the Social protection sector, developing and implementing several high-level Social Security Strategies to reduce the poverty , unemployment and low productivity space among others.
Describing himself as a pro-poor, pro-welfare leader, the Governor said his administration’s Five Point Agenda has social investment as the core of its focus, noting that “these policies cut across health, education, agriculture, youth, women, children development and Special Needs.
“During our electioneering campaign, we promise that we shall not abandon them. We assure that we shall institutionalize an all-inclusive and well-coordinated Social protection Policy that will provide a life support system for the poor and vulnerable . This support system shall aim to reduce the income gap between the haves and the haves-not in our dear state.
In pursuance of that promise, the State Government of Osun under my watch, in collaboration with the Federal Government of Nigeria, through the State Operation Coordinating Unit (SOCU), National Social Safety Net Project, supervised by the Ministry of Economic Planning, Budget and Development today launched this disbursement to the poor of the poor in the state
“Each beneficiary was supported with a sum of between Twenty Five (25,000.00) and Thirty Thousand Naira (N30, 000.00) only. Among the 19,720 beneficiaries, 10,390 of them with existing bank accounts have had access to withdraw and utilize their money.
Also, I have given approval that the remaining 9,330 beneficiaries be given their debit cards. These people are poor people without account numbers and with this distribution, it becomes an achievement that is in tandem with the financial inclusion policy of the Federal Government.
From the foregoing, at least 60,000 people are going to receive their ATM cards of bank accounts which was facilitated through this programme. The smart cards can be useful for further pro poor interventions and private use”, the Governor was quoted as saying.
Governor Adeleke said the objective of the cash intervention is to provide relief for the most poor and vulnerable population in the state against the harsh economic conditions occasioned by the removal of fuel subsidies, high cost of living among others.
Average Rating