The Small and Medium Enterprises Development Agency of Nigeria SMEDAN has signed a Memorandum of Understanding MOU with five clusters chosen for the pilot run of its One Local Government One Product (OLOP) Initiative.
The ceremony took place in Kaduna Wednesday 5th July 2017. The One Local Government One Product (OLOP) Project according to the Director General of the Agency Dr. Dikko Umaru Radda started in 2004 as the Nigerian variant of the Japanese One Village One Product (OVOP) initiative.
He said pilot studies conducted with the support of JICA in Kano and Niger States revealed that the initiative has the potential to turn around the Nigerian economy especially in the area of Agribusiness and to reduce rural- urban migration.
Dr. Dikko noted that the OLOP initiative was dear to SMEDAN and the success of the pilot run will determine the future of the Programme. Adding plans are being concluded to extend the Programme to 109 clusters located across the country.
He told the beneficiaries that their performance is very key in determining the level of support the Federal Government will continue to give to OLOP.
The SMEDAN Boss said “It is also with a sense of fulfillment that I am letting you know that SMEDAN has been working assiduously on your behalf to realize the objectives of the Projects”.
He said some of the pre and post expectations and deliverables of the Programme include Sensitization and needs assessment, Entrepreneurship Development, Plant layout and joint identification of equipment and the Provision of the type of equipment needed for their development which was already mutually agreed between the clusters and SMEDAN.
Dr. Dikko further stressed that the Agency has Provided Working Capital to enable them run their businesses as well as providing Mitigation of the interest rate and thirty percent (30%) of the total loan portfolio.
He added that the banks will grant them three months (3) Moratorium period to enable them stabilize before they start the repayment of the interest free Loan, while the Agency expect repayment within 18 months.
He solicited the cooperation of the beneficiaries in the area of repayment of the interest free loan, ‘this is particularly important as your performance will either encourage or discourage further participations by the banks. I am positive that you will all be role models.”
The Director General assured the beneficiaries that SMEDAN will continue to support all entrepreneurs by providing the required information and training to them where necessary. He urged them to take full advantage of the opportunities being presented by this Programme as the multiplier effect of this initiative on the economy cannot be overestimated in view of the current recession in the economy and current drive of the Federal Government to enhance the competitiveness of the Non-Oil sector.
The first five beneficiaries of SMEDAN’s One Local Government One Product (OLOP) Initiative are Bee Keepers Development Association, Kaduna State; Godwin Gari Processing Kilankwa 2, Federal Capital Territory; Udokanma Ichida Multipurpose Cooperative Society Ltd -Palm Produce, Anambra State; Kayauki Kilishi Batagarawa Multipurpose Cooperative Society Ltd, Katsina State and Potato Growers Processors and Marketers Association of Nigeria (POGMAN), Osun State.
