70 Aba Leather Manufacturers To Get N10.4m BOA Loan | Independent Newspapers Limited
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70 Aba Leather Manufacturers To Get N10.4m BOA Loan

Aba leather
Posted: Jun 8, 2016 at 8:41 pm   /   by   /   comments (0)

Emeka Okafor

Aba – The Market for Development Project in the Niger Delta in conjunction with the Bank of Agriculture (BOA) has concluded arrangements to disburse N10.4 million loan to 70 finished leather products manufacturers in Aba, the commercial hub of Abia State.

The loan, expected to be repaid within 11 months at 12 per cent interest rate, is intended to boost local production of leather products that could be exported to earn foreign exchange.

Speaking in a town hall meeting in Aba on Wednesday, Mr. Babbtude Igun, the Executive Director, Wholesale Finance of BOA, said the loan must be repaid on time to enable the bank to re-coup its fund and also extend the facility to others.


Igun who was represented on the occasion by the BOA zonal manger, urged the beneficiaries to exploit the funds to improve their business, create jobs and contribute to the gross domestic product of the country.

Abimbola Adeyinka, a senior intervention manager/access to finance in MADE, said the programme aimed at increasing the incomes of 150,000 poor people in the Niger Delta region through improvement in key market sectors by raising income of the beneficiaries by 40 t0 50 per cent by September 2018.

He added that 50 per cent of the beneficiaries would be women.

He also said MADE was financed by United Kingdom Department for International Development which aims at promoting the economic activities in the Niger Delta through value chain production, employment and its incomes.

Also speaking, Mazi Okechkwu Williams, the President of Leather Products Manufacturers of Abia State, said MADE is a continuation of Growth and Employment in states project on meat and leather, the project also financed by DFID adding that the disbursement programme started with GEM 1 in 2014.

He said, ”23 co-operatives have benefited from the loan and today we are having five extra- co-operatives of seven groups benefiting from the programme this year.”

He attributed the delay in repaying of the 2014 loan by some who benefited in the past to the recent economic crunch in the country.

He added that they would gradually measure up payment as the association was putting measures to monitor the level of compliance of its members.

Mr. Keran Chukwudi, a beneficiary of the loan, said he got N250,000 loan in 2014 which has made positive impart in his shoe-making business.

He said, “I can now produce 200 pairs in two weeks and make good profit unlike before and I am paying back the loan from the profit I make from my business.”