The Bank of Industry (BoI) has expressed serious concern over the continued underutilisation of the Rural Area Programme on Investment for Development (RAPID) loan scheme in Rivers and Bayelsa States. Despite a ₦100 million allocation for each state, local entrepreneurs have yet to take full advantage of this rare opportunity designed to boost grassroots businesses.
This concern was raised by Pacqueens Irabor, the Divisional Head for Micro, Small and Medium Enterprises (MSMEs), South-South, during a sensitisation session in Port Harcourt. The event was held in collaboration with the Port Harcourt Chamber of Commerce, Industry, Mines and Agriculture (PHACCIMA). It aimed to create awareness among business owners about the benefits and processes involved in accessing the loan.
Irabor stated that the RAPID scheme is tailored to stimulate economic activities in rural areas by supporting local businesses with easy access to capital. He revealed that despite its favourable terms, many eligible enterprises in both states have not applied. This, he said, risks slowing down economic growth in the region, especially for rural-based entrepreneurs who need financial backing to thrive.
The RAPID loan facility offers businesses up to ₦10 million at an interest rate of just 5% per annum. To reduce financial pressure, beneficiaries enjoy a three-month moratorium on both interest and principal repayment. This grace period is also extendable by another three months for principal repayment, depending on the business’s circumstances.
One of the most attractive features of the RAPID loan is the embedded grant. Upon full repayment of the loan, up to 40% of the original loan amount is returned to the borrower as a grant. This means that a disciplined and successful borrower who repays a ₦10 million loan stands to receive ₦4 million back, which can then be reinvested into their business.
Irabor emphasised that the RAPID programme is not just a loan—it is a developmental tool designed to empower communities and ignite long-term economic change. However, he warned that failure to utilise the allocated funds could lead to reallocation to other states with better uptake.
He encouraged entrepreneurs, especially those in agriculture, light manufacturing, and local services, to approach BoI or PHACCIMA for guidance and support through the application process. BoI, he said, has made the requirements straightforward to ensure inclusion and broad participation.
As the sensitisation event progressed, several participants expressed surprise that such favourable funding was available but not widely publicised. Irabor assured them that BoI would increase its outreach through grassroots campaigns, digital platforms, and community partnerships to close this information gap.
He called on local leaders, trade associations, and cooperative societies to champion the RAPID facility and help eligible businesses take full advantage of it. By doing so, he said, Rivers and Bayelsa can create thousands of jobs, strengthen rural economies, and promote self-reliance among citizens.
The Bank of Industry remains committed to inclusive growth. Through initiatives like RAPID, the agency continues to build a future where no community is left behind.
