The Federal Government is set to commence the disbursement of N275 billion palliatives support funds for manufacturers, micro, small and medium enterprises (MSMEs) and nano companies.
The funds announced in July by President Bola Tinubu consist of N75 billion single-digit interest loans for 75 major manufacturers at N1 billion per company at 9.0 per cent interest rate.
Also, N125 billion was proposed for MSMEs. This includes N50 billion conditional grants to one million nano businesses. A total of 1,300 nano businesses will receive N50,000 each.
In addition, N75 billion was proposed for 100,000 MSMEs with each company able to access between N500,000 and N1 million at 9.0 per cent interest rate.
2023: UBA wins African Bank of the Year, Best Bank in 8 countries
The funds are to mitigate the effects of subsidy removal on petrol.
Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite, on Sunday said the intervention programmes are set to kick off.
The minister said the manufacturers, MSMEs and nano companies are to undergo risk assessment.
Uzoka-Anite, in a statement, stated that banks would soon start screening of manufacturers and MSMEs seeking the facilities.
Uzoka-Anite said: “In the Presidential Conditional Grant Programme, the Federal Government will disburse a grant sum of N50,000 to nano businesses across the 774 local government areas in the country.
“The Federal Government through the Federal Ministry of Industry, Trade and Investment and Small and Medium Enterprises Development Agency of Nigeria, (SMEDAN) will collaborate with State and Local Governments, Federal Legislators, Federal Ministers, Banks and other Stakeholders.
“The eligible nano business beneficiaries should be willing to provide proof of residential/business address in their local government area, and provide relevant personal and bank account information, including Bank Verification Number, BVN, for verification of identity.
“The Federal Government will likewise disburse N75 billion to MSMEs across various sectors and N75 billion specifically to Manufacturers.
“The loan shall be administered to the beneficiaries at a single-digit interest rate of 9 percent per annum.
“While MSMEs can access loan facilities up to N1 million with a repayment period of three years, manufacturers can access up to N1 billion to access financing for working capital with a repayment period of 1 year for working capital or five years for the purchase of machinery and equipment.
“MSMEs and manufacturers can apply for the loans by submitting their application on the portal provided for the programme.
“The facility would be accessed through their banks, and applicants would be required to meet the risk assessment criteria of their respective banks.
“As part of its commitment to promote economic development, entrepreneurship and financial empowerment, the Federal Government believes these initiatives will encourage entrepreneurship and job creation.”
The minister said eligible beneficiaries can get more information and apply at the website dedicated to the programme.
- Alex Otti should publish Abia Forensic Report now - May 1, 2024
- FG approves 25%, 35% salary increment for civil servants - April 30, 2024
- CBN director: How I collected $600,000 contract bribe for Emefiele - April 29, 2024
