Obiano Inaugurates ASBA, Disburses N1b Loans | Independent Newspapers Limited
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Obiano Inaugurates ASBA, Disburses N1b Loans

Posted: Jun 11, 2015 at 2:57 pm   /   by   /   comments (0)

By Chukwujekwu Ilozue, Awka

GOVERNOR Willie Obiano of Anambra State has inaugurated the Anambra State Small Business Agency (ASBA) with draw down facility of N1billion as loans to Micro, Small and Medium Enterprises (MSMEs).

Inaugurating the agency at Governor’s Lodge, Amawbia, Obiano, Amawbia on Wednesday, June 10, 2015, Obiano announced that the state had secured N2 billion for on-lending through ASBA to eligible beneficiaries in partnership with participating financing institutions that meet specific selection criteria in the State.

Of the N2 billion made accessible to Anambra State after signing a Memorandum of Understanding (MoU) with the Central Bank of Nigeria (CBN) with an Irrevocable Standing Payment Order (ISPO) for the principal and accrued interest, the sum of N1billion has already been drawn-down out of which the sum of N205m was disbursed to beneficiaries in the first phase of the scheme.

The first set of 10 beneficiaries were shortlisted after due diligence for the Revolving Working Capital.

Speaking after the inauguration, Obiano expressed happiness that the fund drawn from the CBN counterpart grant, has finally been accessed by the state with the aim of addressing the gap and unlocking the potentials of Nigerian MSMEs in order to improve their access to finance, shore up potentials for job creation, and enable them reduce poverty within the country.

He said: “ASBA already has a template to ensure proper disbursement of the funds,” and to CBN he assured, “I want to assure you that under my watch, the money will come home. “

According to him, “MSMEs are globally recognised as the critical engine of economic growth due to their potential to create jobs, food production, generate income and reduce poverty.”

He stressed that “Anambra State is a significant hub for MSMEs in the country, with the State known as the nucleus for both the Automotive Spare Parts Industry in Nnewi and General Merchandise in Onitsha.”


In a brief remark, Chairman of ASBA Board, Greg Obi, observed that the governor’s vision for the realisation of the ASBA initiative was laser-focused since the inauguration of the Board over six months ago.

He thanked Obiano for his support to the agency which ensured the realisation of its successful take-off as demonstrated in the event of the day.

Explaining the role of the CBN in the process, Head Development Finance Department, CBN, Awka Branch, Mrs. Uzo Nwankwo, commended the state for being among the few who have accessed the fund.

Speaking on behalf of the beneficiaries, the Managing Director of DE Zara Industries Ltd, Aka Egwuonwu, who got N50million, said that he would plough the fund into Fish feed production.