The Federal Government has said that it is ready to disburse a grant sum of N50,000.00 and a loan facility up to N1 million for Small and Medium Scale Enterprises (SMEs) across the 774 local government areas of Nigeria, while manufacturing firms can get up to N1 billion loan facility for the purchase of machinery and equipment.
According to a statement issued by the Minister for Industry, Trade and Investment, Dr Doris Uzoka-Anite, the grant and loan programmes of the Federal Government 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
The statement said “The federal government has approved the disbursement of N150 billion grants and loans to small business owners across Nigeria”. It further said that the two disbursement programmes are the ‘Presidential Conditional Grant’ and the ‘Presidential Palliative Loan’.
“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,” Dr. Doris said.
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.
Uzoka-Anite also stated that eligible beneficiaries can get more information and apply at the website (https://nid.fmiti.gov.ng or search for FMITI – Federal Ministry of Industry, Trade and Investment website) which has been dedicated to the programme.