The federal government has approved the disbursement of N150 billion grants and loans to small business owners across Nigeria.
FG, while announcing the approval, further said that the two disbursement programmes are the Presidential Conditional Grant and the Presidential Palliative Loan.
The programmes, according to a statement issued by the Minister for Industry, Trade and Investment, Dr Doris Uzoka-Anite, have been designed to alleviate the impact of the removal of fuel subsidy by President Bola Ahmed Tinubu which came into effect on June 1, 2023.
“In the Presidential Conditional Grant Programme, the Federal Government will disburse a grant sum of N50,000.00 to nano businesses across the 774 local government areas in the country,” the statement read.
“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.”
Uzoka-Anite also stated that eligible beneficiaries can get more information and apply at the website which has been dedicated to the programme.
According to her, the Federal Government will likewise disburse N75 billion to Micro, Small and Medium-sized Enterprises (MSMEs) across various sectors while N75 billion will specifically go to Manufacturers.
The Minister added that the loan shall be administered to the beneficiaries at a single-digit interest rate of 9 percent per annum.
Uzoka-Anite further explained that 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 one year for working capital or five years for the purchase of machinery and equipment.
She said that 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 added.