Abia to float N10bn MSME financing scheme to address youth unemployment – Otti

…Says Over 300, 000 jobs to be created

From Boniface Okoro, Umuahia

Abia State Governor, Dr. Alex Otti, says his administration would launch a N10 billion Micro, Small and Medium Scale Enterprises financing scheme to enable his administration to frontally tackle youth unemployment challenge in the state.

The Governor who noted that floating the N10 billion to promote MSME financing would not only help to create about 300, 000 direct and indirect jobs, but also reduce crime rate; disclosed that he would create a special agency dedicated to rebuilding Aba while greater attention would be given to turning Umuahia to a model state capital.

Otti, in his inauguration speech titled “Time to rebuild,” told Abians who thronged the Umuahia Township Stadium to watch his inauguration on Friday, May 29, 2023, that youth unemployment in the state has been giving him sleepless nights and vowed to address it headlong.

“The challenge of youth unemployment in the state keeps me awake most nights because I know how industrious our youth are. I also know that when active hands and fertile minds are denied legitimate means of engagement, they resort to unsavoury activities to the detriment of all.

“A society that wastes the potential of its youth invariably wastes itself.  It is rather unfortunate that we have not done enough to harness the energy and talent of these young ones to improve the State’s output of goods and services. “That sorry situation is about to change as our government shall, within the next one month, launch a N10 billion Micro, Small and Medium scale Enterprises (MSME) financing scheme, which will comprise conditional business grants and low interest loans to support relevant enterprises. The detailed modalities for accessing these funds shall be made public soon.

“It is my projection that a minimum of 20,000 MSMEs shall benefit from this fund over the next two years and shall in turn generate at least 100,000 direct jobs and another 200,000 indirect employments in the State,” Otti explained. 

He added that his administration would partner commercial banks, local and international development agencies, venture capitalists and independent investors to target MSMEs in high impact areas such as ICT, agriculture, small-scale manufacturing, fashion, leatherworks, and other areas where the state has strong comparative advantage.

According to him, his government would ensure power supply to the MSMEs and remove obstacles that hinder business successes.

“We shall also leverage on some of the major reforms in the power sector to provide structural support in the form of steady electricity access for these entrepreneurs.

“Our administration shall also make sure that the major obstacles to business success such as poor road networks, over-taxation and restricted access to local and global markets are timeously dealt with,” he promised.

On developing Aba, Otti said he would put in place administrative structures which would facilitate restoration of Aba’s lost glory as the economic hub of the state.

“As you all know, Aba is a city that is very dear to my heart and critical to my leadership agenda.  I believe that many Abians have the same attitude towards Aba. I intend to work tirelessly to restore the glory of our beloved Enyimba City.

“I shall, in the next one week, announce the setting up of the most suitable administrative and investment vehicles to drive the social and economic rejuvenation of Aba. My dear brothers and sisters, I can tell you one thing for sure: the glorious days of Aba will soon return. As you are already aware, I had mandated the leadership of one of the most notable construction companies in Nigeria to carry out preliminary assessment of some critical portions of Aba roads. I can assure you that we shall work with the best to fix Aba.

“Beyond working to retain the city’s status as a leading trade destination in Nigeria and across West Africa, we shall also do whatever is necessary to see that Aba’s manufacturing base is restored. Our government shall create the necessary partnerships that will expand energy options for manufacturers, including liquefied natural gas (LNG) and renewable energy sources in addition to providing strategic support to the existing investors in the energy ecosystem in the city.

“We shall also position Aba as an ICT innovation hub in the region, providing support where needed and making sure the young men and women who are already doing remarkable things in that sector are offered the leverage they need to succeed and grow,” he said. 

The Governor remarked that while Aba remains most critical to his government’s agenda, Umuahia, the state capital, would also receive significant and necessary attention.

“We have developed well-thought-out policies and programmes to drive strategic infrastructural development in the city, that will turn it into a model city with world class infrastructure and a favourite destination for businesses, family life and leisure,” he said.