Ebonyi SME Agency

EBONYI STATE HOUSE OF ASSEMBLY PRESS RELEASE

- EBHA APPROVES ₦1 BILLION BANK OF INDUSTRY LOAN FACILITY FOR ON-LENDING TO MSMEs IN EBONYI STATE

The Ebonyi State House of Assembly has approved a proposal for the Ebonyi State Government to obtain a ₦1 billion loan facility from the Bank of Industry (BOI) for on-lending to Micro, Small and Medium Enterprises (MSMEs) across the State at a favourable interest rate.

The approval was granted during plenary on Friday at the Legislative Complex, Nkaliki Road, Abakaliki, presided over by the Speaker of the House, Chief Moses Ije Odunwa.

Reading the letter from the Governor of Ebonyi State, Chief Francis Ogbonna Nwifuru, the Speaker explained that the State Executive Council, at its meeting of Thursday, 14th May, 2026, recommended the approval for the State Government to access the ₦1 billion BOI facility as part of efforts to strengthen economic growth and support small businesses in the State.

The Speaker stated that the facility is intended to meet part of the requirements of the State Action on Business Enabling Reforms (SABER) and the Presidential Enabling Business Environment Council (PEBEC). He further explained that the fund would be domiciled with the Ebonyi State Small and Medium Enterprises Development Agency (EBSMEDA) for onward disbursement to MSMEs at a more affordable and business-friendly interest rate, as against the high lending rates obtainable in many financial institutions. According to him, the facility will also operate as a revolving fund for sustainable enterprise development.

Rt. Hon. Odunwa further disclosed that some deposit money banks had indicated willingness to provide bank guarantees for the facility. He noted that repayment of the loan would be backed by an Irrevocable Standing Payment Order (ISPO) from the State Government.

He outlined the terms of the facility to include a 10 percent interest rate per annum, a 1 percent management fee, and a 0.25 percent monitoring fee on the loan balance, with a repayment tenor of sixty months (five years) and a six-month moratorium.

The Speaker emphasized the economic importance of the proposal, noting that the initiative would significantly boost entrepreneurship, expand access to finance for MSMEs, and stimulate business growth across Ebonyi State.

The Governor’s letter was subsequently adopted as a working document of the House following a motion moved by the Leader of the House, Rt. Hon. Kingsley Ikoro, and seconded by the Member representing Ikwo North State Constituency, Hon. Ifeanyi Nwakpu.

Contributing in support of the proposal, the Leader of the House, Rt. Hon. Kingsley Ikoro; the Member representing Ebonyi North West State Constituency, Hon. Aloysius Nwodo; the Member representing Edda East State Constituency, Hon. Stephen Orji Igwe; the Member representing Ezza South State Constituency, Hon. Friday Ogbuewu; the Member representing Ebonyi North East State Constituency, Hon. Mrs. Chinyere Nwogbaga; and the Member representing Ivo State Constituency, Hon. Onyebuchi Ogbadu, all described the proposal as timely and impactful.

The lawmakers noted that the facility would provide much-needed financial support to small and medium-scale businesses in the State, while also commending Governor Francis Ogbonna Nwifuru for initiating the proposal. They urged the House to grant it accelerated approval in the interest of economic development.

Following deliberations, the Speaker commended members for their contributions and subsequently put the proposal to a voice vote, where it received unanimous approval.

Rt. Hon. Odunwa thereafter directed the Clerk of the House, Mrs. Edene Uche Blessing, to communicate the resolution of the House to the Governor accordingly.