The Cross River State Government, in partnership with the Bank of Industry (BOI), has launched a ₦2 billion matching fund targeted at supporting micro, small, and medium enterprises (MSMEs) across the state.
The initiative was formally presented during an interactive townhall session held at the Prof. Eyo Ita House in Calabar, where business owners, entrepreneurs, and stakeholders gathered to learn about the funding opportunity and the requirements for accessing the facility.
The engagement session focused on helping entrepreneurs understand the application process, eligibility conditions, repayment structure, and documentation needed to benefit from the fund.
Speaking during the session, the Director-General and Chief Executive Officer of the Cross River State Microfinance and Enterprise Development Agency (CRSMEDA), Great Ogban, said the state government remains committed to supporting grassroots economic development through easier access to finance for businesses.
Ogban noted that many small businesses struggle because of limited access to affordable credit, adding that the partnership with BOI is expected to reduce those challenges and help entrepreneurs expand their operations.
Representing the Bank of Industry, the Divisional Head, South-South, Pacqueens Irabor, provided a detailed explanation of how the facility will operate.
According to him, the loan comes with a repayment tenure of between three and five years at a single-digit interest rate of 7.5 percent.
He explained that the facility has been structured to support different categories of businesses across several sectors, including agriculture, hospitality, manufacturing, fashion, and other productive industries.
Irabor said the fund covers both term loans and working capital loans. He explained that term loans are designed for the purchase of equipment and other production assets, while working capital loans are meant to support operational expenses and business activities.
“The facility is meant to support businesses that are contributing to economic growth and job creation within the state,” he said.
He also clarified that importers of production equipment can benefit from the scheme, although the facility does not support the importation of finished retail goods.
On the cost structure, Irabor disclosed that beneficiaries will pay a one percent appraisal fee and a monitoring fee of 0.125 percent after accepting the offer letter.
BOI also used the session to explain the documentation required from applicants seeking to access the fund.
Applicants are expected to provide two invoices, including one proforma invoice and one operational invoice, alongside 12 months’ bank statements for the business account.
For businesses seeking loans below ₦3 million, BOI said only one guarantor would be required. The guarantor can be a civil servant, business owner, bank staff member, or recognised professional.
However, businesses applying for between ₦5 million and ₦10 million and above will be required to provide two guarantors as well as collateral.
The bank stated that applicants within that category must also present a Certificate of Occupancy for land valued at twice the amount being requested. In addition, such businesses must be registered as limited liability companies.
Addressing concerns around land documentation and collateral processing, the Director of Land Bank at the Cross River Geographic Information Agency (CRGIA), Yemi Nelson, assured participants that the agency has simplified the process for obtaining land documents.
He stated that the preparation of Certificates of Occupancy can now be completed within 60 days, a move expected to ease access to collateral documentation for business owners.
Also speaking at the event, the Managing Director of Cross River Microfinance Bank, Ayi Archibong, reaffirmed the bank’s commitment to supporting the state’s MSME ecosystem.
Archibong said the bank has continued to introduce financial support facilities aimed at strengthening small businesses and improving enterprise development across Cross River State.
The ₦2 billion MSME matching fund is expected to improve access to affordable financing for entrepreneurs, support local production, and encourage business growth across key sectors of the state’s economy.
