The Federal Government of Nigeria (FG) is set to launch a new loan scheme for petty traders, known as the IYALOJA/GEEP Loan Scheme, in December 2023.
IYALOJA/GEEP Loan Scheme
The Federal Government of Nigeria (FG) is set to launch a new loan scheme for petty traders, known as the IYALOJA Loan Scheme, in November 2023.
The scheme is a continuation of the GEEP Loan Scheme, which was launched by the previous administration in 2016. The GEEP Loan Scheme 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 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 IYALOJA/GEEP Loan Scheme is being implemented in partnership with the Bank of Industry (BoI).
- The loan is repayable over a period of 6 months.
- There is no collateral required for the loan.
- The loan can be used for a variety of business purposes, such as purchasing inventory, expanding into new markets, and hiring new staff.
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 a number of benefits to petty traders, including:
Access to finance: The scheme provides petty traders with access to finance, which can be used to purchase inventory, expand their businesses, or hire additional staff.
Financial inclusion: The scheme helps to promote financial inclusion by encouraging petty traders to open bank accounts and use formal financial services.
Economic empowerment: The scheme helps to economically empower petty traders by providing them with the resources they need to grow their businesses and create jobs.
How to Apply for the IYALOJA/GEEP Loan Scheme
The application process for the Iyaloja/GEEP Loan Scheme is relatively straightforward. Here’s a step-by-step guide:
- Visit a designated Iyaloja/GEEP Loan Scheme application center: These centers are typically located within major markets or local government offices.
- 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).
- Complete the application form carefully: Ensure you provide accurate and up-to-date information.
- 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.
- Submit the completed application form and documents: Return the form and documents to the designated application center.
Application Review and Disbursement
Once your application is submitted, 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.
Eligibility Requirements for the IYALOJA/GEEP Loan Scheme
To be eligible for the IYALOJA/GEEP Loan Scheme, petty traders must meet the following criteria:
Be a Nigerian citizen
Be a petty trader with a business in one of the selected markets
Be at least 18 years old
Have a valid bank account
Here is some additional information about the IYALOJA/GEEP Loan Scheme:
The scheme is open to all petty traders, regardless of their gender, religion, or ethnicity.
The loan is repayable over a period of 12 months.
Petty traders are not required to provide any collateral to obtain the loan.
The scheme is administered by the National Social Safety Nets Coordinating Office (NASSCO).
If you are a petty trader and you are interested in applying for the IYALOJA/GEEP Loan Scheme, please visit your local market and meet with a Nassco enumerator.