When Delta’s micro entrepreneurs got smarter with S.M.A.R.T Agenda

Governor Okowa

By Chukwudi Abiandu

The business generation and nurturing plan of the S.M.A.R.T. Agenda of the Governor Ifeanyi Okowa administration in Delta State gained further momentum on Tuesday November 19, 2015 when the government through the Delta state Micro, Small and Medium Enterprises Development Agency (DMSMA) disbursed loans to micro business operators that have so far satisfied the criteria for loan disbursement.  Executive Secretary of the Agency, Mrs. Shemite Bello disclosed that the agency has so far disbursed the sum of N324,130,000 to micro business operators in furtherance of the prosperity agenda of the administration.

At the loan disbursement exercise which the agency hosted in its office, the sums were disbursed through micro finance banks as follows:

·         IC Global Finance Bank was allocated the sum of N62 million that the bank will disburse to successful micro business operators in IKa North, Ika South, Isoko North, and Isoko South.

·         A Micro Finance bank at Illah was allocated N81,400,000 to disburse to micro business operators in Aniocha North, and Oshimili North.

·         No Poverty Micro Finance Bank was allocated N39 million for Aniocha South micro business operators.

·         Coastline Micro Finance Bank received N31,300,000 to be disbursed to micro business operators in Warri south, Uvwie, Sapele and Isoko south.

·         Ebu Micro Finance Bank was allocated N16,250,000 for disbursement to micro business operators in Oshimili South Local Government area, and 

·         Unifer Micro Finance Bank got N50,250,000 to be disbursed to micro business operators in Ughelli south and Ughelli North.  

While it was not immediately clear the total number of beneficiaries of the loan package, what constituted the lowest and highest, the good news is that vivacious Mrs. Bello, obviously excited that past beneficiaries of the loan were paying back, gave kudos to the entrepreneurs, recalling that before she came on board as Executive Secretary DMSMA she was told that Deltans don’t repay their loans. Although she refused to believe what she was told, now having been in the saddle for this while, her experience has disproved what she heard initially. She said: “I stand here today to say that Deltans repay their loans. So, whatever they said about you yesterday does not matter. Today, it is different, because we have received enough money from the repayments to give us more strength of payment. And that’s where we are getting the money from. It is the ‘change’ from the last administration that we are giving out today. But since we began this S.M.A.R.T. Agenda, Delta  State has become S.M.A.R.T.

She explained that past recipients of the loans are paying back, and that it is from the repayments that loans are being given out to fresh applicants. “You give us something to give out, and if you continue to do that the money will not finish. So I am so proud to be a Deltan again,” she said.

Indeed, the loans disbursed went to micro entrepreneurs in all the 25 local government areas of the state. “But we are still working on applications now, and we will continue to work on applications,” she disclosed. The reason is just obeying the rule of money in the financial system called Cash Flow, in which money must go out, and money must come in. “This agency is now doing cash flow because money is not only going out, money is now coming back. And we are going to perfect it,” Mrs. Bello said.

Her argument is that there is a lot of money already given out to those who got loans to develop their micro, small and medium enterprises, and that it is very necessary that such beneficiaries remain diligent in repaying such loans back to the coffers of the agency. Because doing that is what makes it possible to extend the facility to others in the first instance. And in the other instance, it will allow the agency to draw down the kind of money where bigger sums of loans can be given out. Mrs. Bello explained that as of now, the agency is not able to advance the kind of money that some persons need. “So, we will give you something,” she said, adding humorously that “They say half bread is better than so, so. Not better than none.”

Of course, the point was well made to the loan beneficiaries that the most important expectation from them henceforth is their ability to pay back money taken. Almost every other speaker at the event harped on this point that the money must be paid back. The chief Job Creation Officer, Prof. Eric Eboh, with a tinge of fun, yet the serious message was not lost when he encouraged the beneficiaries to utilize the loans in the best way possible, saying: “Whether you utilize it or not, she wants the money paid back. So, if it’s possible that you can use it wrongly and still come before the bank that is not her business. What she wants is for the money to come back, whether you are quarrelling with somebody or not.”

Mrs. Bello also spoke about the desire of the Agency to protect the loan beneficiaries from the high handedness of some micro finance banks. She recalled: “One bank looked for our trouble. They started making beneficiaries pay more than they should. But we handled the bank. We will fight the bank for you but we won’t give you money directly, go to the bank. Because if we give you money directly, who will get them back for us?”

For loan seeking micro, medium and small scale entrepreneurs, Mrs. Bello said they should direct their requests to the banks. They are not to come directly to the agency. What the Agency does is to work on the applications that banks received, assessed and recommended. The Agency works on the applications recommended by the banks. It is from it they make their verification and approve for the release or non release of loans. “So, you don’t necessarily have to come here. We expect the bank to come here,” she said.

She also called attention to some people that ask for N20 million loan. For her, these are monies that are not micro. “I recommend that they go to a commercial bank. Micro Finance Banks deal with sums not above N9,999,000 mark. But Delta State put a peg of N5million. So, any loan you ask for in excess of N5 million cannot be attended to because we already have a brief. It means you’ll have to go to small and medium loan. What we are doing now is just micro, and we are engaging the commercial banks. Some of you don’t belong to micro. That’s still okay,” she explained.

Okowa at inauguration of PPSP in Asaba

For the Senior Political Adviser to the Governor, Chief Festus Ochonogor, the occasion was to appreciate the supporters, market women, artisans, Keke NAPEP operators, and every supporter that was instrumental to the victory of Governor Ifeanyi Okowa at the polls. “What we are doing today is part of the realization of His Excellency’s promise in ensuring that we create wealth and also help create jobs,” Ochonogor said. He recalled that during the electioneering campaign, Governor Okowa promised that he was going to help to create wealth and jobs. “And what we are doing today is part of the process of enhancing job creation and wealth creation, he said, pointing out that in spite of the financial constraints that he met on assumption of office, the governor has set up YAGEP, STEP and PPSP programmes that already on-going. And that the event of that day, which is the disbursement of loans to micro entrepreneurs was to take the fulfillment of the promises higher.

Ochonogor said it all indicated that the Governor is implementing his S.M.A.R.T. Agenda religiously, and step by step. “It shows that he is somebody that is interested in our lives, and therefore, interested in making life comfortable for us. It is also achieving prosperity for all because the loan disbursement is part of enhancing prosperity,” he argued. While pointing out that this is just the beginning, he urged the beneficiaries to manage the money well to bring up their businesses so they can create wealth for themselves and jobs for the generality. And in his admonition to the recipients, he cautioned them on why they must use the money judiciously for the purpose that it is being given and not be reckless with it because it is not a free gift. The senior Political Adviser declared: “I want to implore you, please, this money you are given, which is just the first stage, it is a continuous process. Please ensure that you use it judiciously, so that the aim will not be defeated. Our aim is for you to benefit, to become richer and more comfortable. Because if you are richer and more comfortable crime level will reduce, you will be happy. If we say tomorrow come, we are going to the trenches, you will go with us. But if we give you this and you don’t utilize it well, one, you would have disappointed us. Two, it will be difficult for us to come back to you to say support us. But if you use it well, you will be happy to support us next time, and that means more will come your way.”

Ochonogor continued his admonition: “I want you to take this message very, very seriously, because it’s a two way two way traffic. We are giving to you, we expect you to reciprocate by paying back, and using it judiciously, so that the essence of it will be achieved.” For those yet to benefit he said it does not mean they will not benefit. “There is due process,” he said. The process is to belong to a co-operative, and then open account with a micro finance bank, which will assess applications and make recommendation to the DMSMA. “We won’t say because we know you and avoid the rules. No! Steps that must be taken must be taken. And those of you that likely going to get but have not been given must ensure that you follow the rules. We are not going to bend any rule because of any supporter. I hope you people are getting me clear. We are rigid in implementation. Even if you are our supporter, you must follow the law. The law is that you must go and open an account with a micro finance bank. From that account, the MFB will assess you, after which they will make recommendation and you will come to receive the money. The money is there,” Ochonogor said.

The commissioner for Information, Mr. Patrick Ukah in his initial speech went political saying excitedly: “I think what we are witnessing this afternoon is typical example of what we have as a governor, Ekwueme, Dr. na do.  My joy here is that we have people here today who will tell the good story that is going on. There are people who never believed it’s possible. Today, this ia na example of a soft ware at work.”

He clarified that the people within the focus of Okowa’s government are the masses, pointing out that the micro entrepreneurs represented the masses. “We have given directly, you are the ones that will tell the world that it is happening, and that those things that Okowa told you are working,” Ukah said. He announced that there are people that have benefitted from the YAGEP programme of the administration. Such people, he announced are expected to be in the rural areas. Since farmers don’t farm in the city, but in the villages, he urged the micro entrepreneurs to assist in telling the story of what is happening in the YAGEP programme. “We have a lot of our children who are also benefitting from the STEP programme. They are all over the state. If you go back, you don’t live in the air, tell people around you so that people will know that the government of Governor Ifeanyi Okowa is working. And you all this afternoon are evidence of that work. We are building a new Delta state,” the commissioner declared.

He explained what he meant by building a new Delta by indicating that it is those who maintain principle, those who will see an opportunity they never had before and will use it to survive. Like the other speakers before him, he also admonished the micro loan beneficiaries to guard their money very jealously by ensuring that business money is separated from expenses extraneous to their business. Ukah said: “The way we are starting today with the little they are giving you, one of the things we were taught in Business School was how to put ourselves away from our business. You are one entity; your job is one entity. You don’t sell and eat; you sell and calculate what to do with the profit you make. And if you learn that, you will be a better person in life. And I am very sure that our Ekwueme, Dr. Ifeanyi Okowa will be very proud of you all.”

Like one seeing into the future, Ukah told them the story they are starting is one from which they will tell a bigger story in four years’ time. And the recipients chorused, amen. “The way you are going to tell the story is that we will see who will stand out to come and tell us how you started and who you are in four years’ time. You are going to be the testimony of prosperity for all Deltans,” he prayed. This however, is contingent on when they collect loans, utilize them and return same so that others can benefit also. It is the way to build a greater and better Delta. He cautioned that it is imperative that they lay the foundation for their business to grow. “Foundation is what you have laid now, and when you get that money, even the woman that sells tomato in the market understands that there must be difference between personal money and the tomato business. Once you don’t get that right from the beginning, you have already failed. And I can be sure that you cannot be able to pay back. If you don’t pay back you will spoil the job of Ekwueme,” he said. He then urged all of them to make discipline their watch word.

The Chief Job creation Office, Prof. Eric Eboh expressed joy about what he described as a great event happening in Delta State. “And we are all very glad. We thank His Excellency, Senator Ifeanyi Okowa for the exemplary and credible leadership and strong vision that he has brought to bear in the governance of the state,” Eboh said. He underscored that point that all those working with the governor are motivated by his clear vision and uncommon determination and hard work to put Delta State at the top of all that happens in Nigeria. “Delta no de carry last,” he said in pidgin English.

Eboh in applauding the micro loan recipients recalled that the journey started many months ago, when the job creation office was established. “Many of you came with proposals. Some for loans, and some for different kinds of support. And we told you to be patient because the governor as at that time was working on re-establishing and getting the Micro, Small and Medium Enterprise Development agency working. There was gap because the previous Executive secretary left with the immediate past government. No immediate replacement, so there was a gap. And we asked you to be patient and that a time will come for you to submit your papers and be evaluated for micro credit,” he revealed.

He explained that micro credit, STEP, YAGEP, PPSP are all integrated programmes of the Okowa administration designed for the benefit of Deltans. He urged the people to remember that it is prosperity for all Deltans, that the vehicle for that prosperity is the S.M.A.R.T. Agenda, and that embedded in the S.M.A.R.T. Agenda is the Okowa Plus package. “Whether it is PPSP, where you are being given farm inputs, or tractors, it is called Okowa Plus. It is one package,” he hinted.

Eboh clarified further that micro credit is one element in that package. Like the previous speakers he urged the recipients utilize the loans in the best possible way. “As you have already been told, whether you utilize it or not, she (the Executive Secretary) wants the money back. So if it is possible that you can use it wrongly and still come before the bank that is not her business,” he stated.

Eboh announced that there is a new mindset that is emerging in Delta state, and then alluded to the farm inputs being distributed across the state as support packages for farmers. “And it is important that the micro credit that is being given is to support whatever you are doing. We expect that you will use the micro credit to expand your working capital and then create jobs.  It is part of job and wealth creation. Nothing else,” he hinted.

Like Ochonogor said earlier, Eboh again stressed the need for the recipients to make paying back the loans taken a desideratum. He said: “It is possible that before now loans were given without anything in mind. But we have something in mind. Two things we have in mind for giving these micro credits: To create jobs, and to create wealth. That is why the Job Creation Office will work with the DMSMA to monitor how this money is being utilized. So, we are going to be coming back to you. We have your phone numbers, your addresses, your locations; we shall come back to ask you to what extent is the loan helping you to improve output, your working capital, improve your income and hire more hands to do whatever you are doing. We are doing this for everything that we are distributing. For tractors, we are following up with the tractors associations to find out the amount of farmlands that have been cleared by the tractor and how many people have been employed. Even for processing mills. As I speak now, our vendors and engineers are installing cassava processing mills in Ethiope West Local Government Area, and throughout the state, even with oil palm. A lot of things are happening.”

On why the Job Creation Office will be going round with the DMSMA office to monitor what is going on, he said: “Because we want to be able to say at the end of the next six months this is how many jobs we have created, this is the amount of wealth we have created in the state. We want to keep the records so that when we say we have created this number of jobs, it will not be like something that is in the air. We can point to you where the jobs are.”

Eboh was full of commendation of Mrs. Bello for hitting the ground running. “She has really come up with a lot of momentum. I know the amount of work she has put into this job to make sure that we set the ball rolling,” he revealed.

The Central Bank of Nigeria (CBN) also showed interest and presence at the micro loan disbursement. Mr. Bukar Ali who represented the apex bank commended Mrs. Bello, disclosing that she is not new to CBN programmes. “When I heard she’s the new Executive secretary, I said good. We have someone who understands CBN programmes, and I am sure she’s going to take advantage of that,” he pleaded. Ali also told Delta state must take advantage of what is going for them as the home state of the CBN Governor, Mr. Godwin Emefiele, because he wants the state to benefit from all CBN programmes. “So we are on our toes, and we are ready to assist you in doing our job and making sure the job is done,” Ali said.

He announced that the MSMED Fund is a N220 billion revolving fund. “I don’t want you to disappoint the CBN Governor, because he wants you to get it. And when you get this fund, please utilize and pay back. When you pay back, you get more.”

It was Sir Prosper Iriogho, chairman of the association of Micro Finance Banks who summed up the issue of receiving and paying back of loans. He told the recipients the money they are receiving is not free; it must be paid back. He said what affects his association as bankers is the issue of capacity building, pointing out that a situation where money is released to customers without giving them the necessary information, they may think it is free money. “it will be nice if you if you do your job well. We give you the money, you pay within record time, then the ship will keep sailing. The benefit of paying back within record time is that you can now ask for increase,” Iriogho admonished.

In all, one important message that beneficiaries and potential beneficiaries of the micro credit facility received and got smarter with after they were told of the huge benefits that will accrue to them when they effectively utilize the loans given to them, the expectation and responsibility on them to pay back, and the implication of not paying back. The message is the implication of not paying back could involve invoking the laws setting up the anti corruption agencies, like ICPC, EFCC and the police, and engaging them to go after such loan repayment defaulters.

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Our mission is to create stronger entrepreneurs, enterprises, says Shemite Bello

Mrs. Shemite Bello, Executive Secretary of Delta State Micro, small and Medium Enterprises Development Agency, in an interview with journalists shortly after micro credit cheques were presented to MFBs for onward disbursement to recipients said to partake of the loans, the applicant must be resident in Delta State. You don’t have to be an indigene of Delta state, but you must be paying your tax here or be living in Delta.

Again, you must identify your business, choose a bank within Delta where you open an account, fill the proper form, bring your business plan. The bank must go and do what they call Know your customer (KYC). You must give them normal due diligence. When they do, they will bring in the application to us, we will go through the applications.

She confirmed that the agency has people with varied entrepreneurial skills through which proper evaluation of applications are made. For instance, an expert in events management will look at what is missing, what the applicant is asking for and what they need. Once the criteria are met, even if it is not up to 100 percent, and they were able to meet 75 percent are considered. “Because we know they’ve not gotten the training to the extent we need,” Mrs. Bello said, and explained: “But people who bring in applications straight to my office, this is not the bank. Ours is to give money to the bank to give to the people; and ours is to hear from the people how the bank is treating them. If the banks don’t treat them well they will not get away with it. Some of the banks that sat here didn’t give out cheques because they did what they ought not to do, thinking they can get away with it. They will not get away with it. They will treat Deltans properly, advise people on what they’ve done so that they can go back and qualify.”

The Executive Secretary is greatly excited that beneficiaries of the loan facility from 2009 are beginning to return the money, indicating that there will be constant flow of cash, and the agency will be able to extend the facility to others.

Asked what the agency is doing to reach out to people, particularly the uneducated and unenlightened, Mrs. Bello said a micro finance bank that does not know how to reach customers in the micro sector ought not to be a bank. She also eased out misgivings about those people that are thought to be uneducated, saying: “Most people who don’t have certificate because they did not go to school do not mean they do not have sabificate.” He logic is that the fact that some people did not go to school does not mean they are novices. They may be uneducated but shrewd business people. “Some of these women that can’t speak English can calculate to precision. They know their business,” she said.

She is elated that the right people are getting the money. She recalled an instance when a woman beneficiary from Warri when she was verified said: “de come check me for y place, and I no no anybody for government. Na true abi n alia? I say I no no.”  “We tin be your name?” she was asked. They went and checked and found out that she was among the successful persons. “It was because we told the banks to go out there and find people on the farm, find them where they are working. Because the real busy people will never be in town. And the banks have done a great job. I am an expert in micro,” Mrs. Bello declared.

The point being made is that the verification and certification lies with the banks. The Agency has no hand in it. “I do not want to have a hand in it unless the bank is oppressing, suppressing or treating the people badly. I can have a hand in how much is given based on what we have but I don’t want to get involved on how the process is done,” Mrs. Bello stated, explaining that the Job Creation office brings lists to the Agency, Ministry of Commerce and Industry, and Ministry of Agriculture also bring lists. The lists are sent to the banks under those local governments to verify.

On what is in place to educate potential beneficiaries who come to the Agency for information, Mrs. Bello said: “we are getting a business clinic, we are getting a call centre, we are going to do a lot of the internet to check what our people will need in order to succeed. If they don’t succeed, we will fail. But we will follow them in this business from start to finish, until we see stronger entrepreneurs and enterprises.”