Update on FG N50,000 IYALOJA/GEEP Loan Scheme December 2023

The Federal Government of Nigeria (FG) has announced the upcoming launch of a new loan scheme for petty traders, called the IYALOJA/GEEP Loan Scheme, set to take place in December 2023. This initiative is part of the government’s efforts to support and empower small and medium-sized enterprises (SMEs) in the country.

In addition to the IYALOJA/GEEP Loan Scheme, the FG has already disbursed a total of N150 billion in Presidential Palliative Loans for MSMEs, as well as launched several other loan application portals for fast cash and non-interest loans. These loan schemes aim to provide accessible and affordable financing options for entrepreneurs and small business owners to grow and expand their businesses.

IYALOJA/GEEP Loan Scheme

The Federal Government of Nigeria is set to launch a new loan scheme for petty traders in November 2023, known as the IYALOJA Loan Scheme. This scheme is a continuation of the GEEP Loan Scheme, which was launched by the previous administration in 2016, and provided microloans to low-income Nigerians, including petty traders, artisans, and farmers.

The IYALOJA/GEEP Loan Scheme is specifically designed for petty traders and will provide them with the financial support they need to grow their businesses. The scheme is targeted at reaching at least 1.5 million Nigerians nationwide, and will provide a non-interest loan of N50,000 to phase 1 of market traders, selected from 109 markets across every Senatorial zone in Nigeria.

The scheme is being implemented in partnership with the Bank of Industry (BoI) and the loan is repayable over a period of 6 months. There is no collateral required for the loan, and it can be used for a variety of business purposes, such as purchasing inventory, expanding into new markets, and hiring new staff.

The Minister of Humanitarian Affairs and Poverty Alleviation, Dr. Betta Edu, has begun market sensitization and engagement activities in preparation for the launch of the Scheme. In a statement, Dr. Edu said, “The IYALOJA/GEEP Loan Scheme is a key part of the Federal Government’s efforts to reduce poverty and boost economic growth. Petty traders play a vital role in the Nigerian economy, and this scheme will provide them with the financial support they need to grow their businesses and create jobs.”

The FG is hopeful that the IYALOJA/GEEP Loan Scheme will make a significant contribution to reducing poverty and boosting economic growth in Nigeria.

Benefits of the IYALOJA/GEEP Loan Scheme

The IYALOJA/GEEP Loan Scheme offers several benefits to petty traders. The scheme provides access to finance, which can be utilized to purchase inventory, expand businesses, or hire additional staff. Additionally, the scheme promotes financial inclusion by encouraging petty traders to open bank accounts and use formal financial services. Finally, the scheme helps to economically empower petty traders by providing them with the resources they need to grow their businesses and create jobs. Overall, the IYALOJA/GEEP Loan Scheme provides a much-needed boost to the economic prospects of petty traders.

How to Apply for the IYALOJA/GEEP Loan Scheme

Applying for the Iyaloja/GEEP Loan Scheme is a straightforward process that can be completed in a few easy steps. The following is a guide to help you through the application process:

1. Visit a designated Iyaloja/GEEP Loan Scheme application center: These centers are typically located within major markets or local government offices.
2. Obtain an application form: You can either collect the form from the application center or download it from the official website of the Government Enterprise and Empowerment Programme (GEEP).
3. Complete the application form carefully: Ensure you provide accurate and up-to-date information.
4. Attach required documents: These may include a copy of your valid ID, a passport photograph, a letter of attestation from your market women’s association, and evidence of your business activities.
5. Submit the completed application form and documents: Return the form and documents to the designated application center.

After submitting your application, it will undergo a review process. If your application is successful, you will be notified and invited to participate in a mandatory financial literacy training program. Upon completion of the training, you will receive the loan amount of N50,000, which is typically disbursed electronically.

The enumerator will capture the trader’s information and open a savings account for them. Once the trader’s registration is complete, they will receive the N50,000 loan directly into their savings account.