The government is escalating efforts to recover outstanding loans from Hustler Fund defaulters through the introduction of an advanced tracking system.
According to Cooperatives and Micro Small and Medium Enterprises (MSMEs) Cabinet Secretary Wycliffe Oparanya, the new system will enhance the ability to accurately trace and track borrowers who have yet to repay their loans.
The decision comes as the latest figures from the ministry reveal a significant gap in loan repayments.
Out of the 21 million borrowers who have benefited from the Hustler Fund, a mere 2 million have cleared their debts, underscoring a worrying trend that the government is keen to reverse.
In addition to the tracking system, Oparanya announced the upcoming launch of a Hustler Fund credit system.
This initiative aims to incentivize consistent borrowers by offering rewards, while also compiling critical data to assist in integrating these individuals into the mainstream financial system.
The credit system is part of a broader strategy to encourage financial discipline and ensure that the Hustler Fund fulfills its mandate of empowering small-scale entrepreneurs across the country.
The Hustler Fund, a financial inclusion initiative, was established to support citizens in launching and sustaining businesses, regardless of their social standing.
However, many small business owners have expressed concerns about the high costs associated with starting and maintaining their enterprises, which may contribute to the low repayment rates observed.
Oparanya's remarks were made during the Annual SME Conference and Awards Exhibition, where he urged SMEs to embrace innovation as a means of building resilient and sustainable businesses.
.png)
0 Comments