In a significant boost to economic inclusion and entrepreneurship in Delta State, Governor Rt. Hon. Sheriff Oborevwori on Tuesday signed a Memorandum of Understanding (MoU) with the Bank of Industry (BoI) at Government House, Asaba. The agreement hands over the management of a ₦1 billion revolving fund provided by the state government to support Micro, Small, and Medium Enterprises (MSMEs) across Delta.
This initiative, described by the governor as a "major milestone," aligns directly with his administration's MORE Agenda — an acronym standing for Meaningful Development, Opportunities for all, Realistic Reforms, and Economic Advancement. The fund, originally approved by the State Executive Council in 2025, addresses one of the most persistent barriers facing small business owners: limited access to affordable financing.
Governor Oborevwori emphasized the pivotal role of MSMEs in Nigeria's economy during the signing ceremony. He highlighted that these enterprises form the backbone of any thriving economy, generating the highest levels of employment and serving as primary drivers of growth. Nationally, MSMEs account for approximately 96% of all businesses and contribute to 84% of employment in the country, while also adding around 48% to the national GDP, according to reports from organizations like the International Labour Organisation (ILO) and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).
In Delta State, where economic activities span trading, artisan work, agro-processing, and small-scale manufacturing, the governor noted that MSMEs are essential for job creation and sustainable development. "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," Oborevwori stated.
The revolving nature of the fund is a key feature designed for long-term impact. Unlike one-off grants, loans disbursed under this scheme must be repaid diligently, allowing recovered funds to benefit subsequent entrepreneurs. The governor stressed the importance of integrity and accountability: “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.”
This approach marks a deliberate shift from traditional grant-heavy empowerment programs. While acknowledging the value of grants in certain contexts, Oborevwori explained that excessive reliance on non-repayable aid can sometimes reduce beneficiaries' sense of responsibility. The loan model, he argued, promotes financial discipline, encourages wise investment, and fosters sustainable business growth. “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,” he added.
The partnership with the Bank of Industry was chosen strategically due to BoI's established reputation as Nigeria's leading development finance institution. With robust credit appraisal systems, extensive experience in managing similar funds, and a track record of supporting industrial and entrepreneurial growth nationwide, BoI is well-positioned to handle the initiative transparently and efficiently.
The collaboration extends beyond mere financing. It incorporates vital business development services, including advisory support, capacity building, and technical assistance — elements crucial for entrepreneurs navigating a competitive market. Governor Oborevwori expressed full confidence in BoI's ability to deliver: “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.”
Dr. Olasupo Olusi, Managing Director of the Bank of Industry, echoed this sentiment, describing the partnership as a "strategic step" toward expanding enterprise activities and unlocking sustainable growth in Delta State. He affirmed BoI's commitment to translating policy priorities into practical solutions, particularly in key economic sectors. “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,” Olusi said.
He expressed gratitude to the Delta State Government for its dedication to economic progress, viewing the MoU as a clear demonstration of proactive leadership.
The timing of the launch is particularly strategic. Although initially slated for December 2025, the program was deliberately shifted to January 2026, when entrepreneurs typically refocus on rebuilding and scaling their operations for the new year. This ensures maximum engagement and impact right from the outset.
Looking forward, Governor Oborevwori signaled ambitious scalability. If the fund proves effective — through high repayment rates, business growth, and visible job creation — the state is prepared to expand it significantly. “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,” he declared.
This move complements other empowerment efforts under the MORE Agenda. In late 2024, the state disbursed grants to thousands of MSMEs through programs like MORE Biz-Up, providing stimulus to cushion economic hardships. The 2026 budget proposals also include substantial allocations for MSME support, such as over N3 billion earmarked for the Delta State Small and Medium Enterprises Development Agency (DESMEDA), underscoring a multi-pronged approach.
The initiative arrives amid broader national efforts to bolster MSMEs, which face challenges like high borrowing costs, inflation, and limited credit access. By partnering with BoI — an institution that has managed similar state-level matching funds and national intervention programs — Delta State positions itself as a leader in fostering a resilient private sector.
