LendTech

Osinbajo, Reason Traders will not Repay Trader Moni Loan

Rarzack Olaegbe

The petty traders and artisans would not repay TraderMoni loan because they would think that it is their own slice of the proverbial ‘national cake.”

However, if the Bank of Industry [BoI], not the vice president Yemi Osinbajo, is the one sharing TraderMoni on behalf of the Federal Government, the petty traders and artisans across the country would see it business and make plans to repay the loan.

From the way TraderMoni is structured, a trader must have repaid the initial N10,000 loan to be eligible for the next round. In other words, once a trader defaults in the first instance, she is out of the scheme, and her credit history would be considered poor.

credit history is a record of a borrower’s responsible repayment of debts. This comes from a number of sources such as banks, collection agencies and governments and it determines the ability of these traders to obtain credit in future.

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Nevertheless, since most of these petty traders will definitely default, they would be ineligible to access further loan from any of the banks and other government agencies; as such, this action would push them “under” the bottom of the pyramid.

Trader Moni is a loan scheme of the federal government. It is created to assist traders and artisans and grow their petty trade. As part of Government’s Enterprise and Empowerment Programme [GEEP] scheme, federal government is giving these lowly Nigerians interest-free loan through Bank of Industry. This loan ranges from N10,000 and to N100,000.

However, a trader is qualified for the next disbursements if she repays the initial N10,000 loan; otherwise, she is out of the race. Statistics gleaned from the TraderMoni website shows that 32 states have been visited with 40 urban markets in the six geopolitical zones, and remains four states to cover.

Yes, the idea of TraderMoni is good but the distributor is faulty. Vice President Yemi Osinbajo is the distributor, the one at the centre of the disbursement, the one that would make it impossible for the traders to repay the loans.

The reason is that the traders, who are at the bottom of the pyramid and have perpetually perceived government as the one that share the “national cake”, would not see any sane reason to repay the N10,000 loan.

And when a trader defaults, he is lost out in the race. With this lost opportunity, government’s goal to change the level of the traders through TraderMoni is equally lost.

Then the traders are back in Egypt. Nigeria would have lost the chance to nurture another Dangote because government has politicized the disbursement of TraderMoni. By putting Osinbajo in front of the good scheme, government has given the traders and artisans reason not to repay the loan.