The introduced TraderMoni by the federal government is on target to empower two million businesses across the country before the end of 2018.
The scheme which has been launched in Lagos, Abia, Kano, Katsina and Osun has been favourably received by market leaders and beneficiaries alike.
With over 23 million Nigerians financially excluded, the introduction of TraderMoni by the federal government in conjunction with Bank of Industry(BoI) last month could not have come at a better time.
The SMEs is a sector that uphold the economy due to their large numbers, petty traders and artisans continue to contribute to Nigeria’s GDP without any credit support from commercial banks. Understandably, they lack the necessary documentation and collateral needed to qualify for loans.
The President Muhammadu Buhari-led administration which has identified closely with the informal sector, leveraging on the penetration of mobile devices across the country introduced TraderMoni to provide collateral free loans of N10, 000.
Speaking at the launch of the scheme recently in Abuja, the vice president, Prof. Yemi Osinbajo, enjoined the traders and artisans to avail themselves of the TraderMoni loan which is meant to empower them and expand their businesses.
He said TraderMoni was targeted at those at the bottom of the pyramid running micro-businesses.
Beneficiaries get N10,000 as the first loan and qualify for a larger amount of N15,000 when they pay back the loan. After payback of the second loan, they qualify for a N20,000 loan, and then N50,000, and then N100,000. TraderMoni underscores the federal government’s commitment to helping petty traders and artisans change their level by providing continuous loans to enable them expand their businesses.