The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has expressed concern over the misuse of business loans by some Nigerians. According to the agency, many entrepreneurs who access loans meant for Micro, Small, and Medium Enterprises (MSMEs) often divert the funds for personal purposes and fail to repay.
SMEDAN Officials Speak at People's Roundtable Conference
Speaking at the People's Roundtable Conference, SMEDAN's Director-General, Mr. Charles Odii, represented by Charity Abah, noted that the agency primarily acts as a facilitator connecting businesses with lenders rather than disbursing loans directly. However, a recurring challenge is that some beneficiaries misuse the funds. Instead of investing in their businesses, they spend the money on personal needs such as buying cars or expanding their families.
Odii stated: "We have been part of so many loan programmes that we've facilitated as a middleman. We are still running with it for the past five, six years. Some people will collect those loans and divert them. Some will go and buy cars, some will go and marry more wives, and so on and so forth."
He further explained that these loans are designed to be repaid and recycled to benefit other entrepreneurs. Unfortunately, many recipients do not return the money, making it difficult for others to access similar opportunities. In some cases, borrowers even disappear or change their contact details to avoid repayment.
Call for Responsible Citizenship
At the same event, Hon. Rinsola Abiola of the Citizenship and Leadership Training Centre addressed the relationship between leaders and citizens. She observed a growing disconnect between the two groups. Abiola emphasized that when young people speak up or protest, it should not always be viewed negatively. Instead, it reflects their deep care for the country. However, she stressed that good citizenship goes beyond complaining; people must take meaningful actions to contribute to national development and exercise their rights responsibly.
Building Dialogue and Collaboration
In his opening remarks, Emmanuel Ayantayo, represented by Mr. Oladeji Adesola, highlighted the purpose of the People's Roundtable. The event aims to bring together diverse groups, including leaders, professionals, educators, and policymakers, to encourage open discussions, share real-life experiences, and find practical solutions to national issues. According to him, the platform helps connect ideas with policies and creates opportunities for citizens to engage directly with decision-makers.
SMEDAN Disburses N5 Billion to Small Businesses
In related news, Legit.ng earlier reported that SMEDAN is disbursing a N5 billion loan to small business owners. The agency said the single-digit loan, in partnership with Sterling Bank, is intended to help small businesses grow. SMEDAN revealed that the hurdles surrounding access to the loan have been cleared, and small business owners can now apply.
