The federal government is set to begin disbursement of N50,000 to nano businesses in all 774 local government areas in the country as part of efforts towards assuaging the impact of subsidy to small businesses.
The Minister of Industry, Trade and Investment, Ms Doris Uzok-Anite disclosed this in a statement signed by her.
She also noted that the program consists of the Presidential Conditional Grant Programme and the Presidential Palliative Loan Programme targeted at manufacturers, SMEs, MSMEs and businesses.
The statement read,
- “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.”
- “The Federal Government through the Federal Ministry of Industry, Trade and Investment and Small and Medium Enterprises Development Agency of Nigeria will collaborate with state and local governments, federal legislators, federal ministers, banks and other stakeholders.”
- “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 for verification of identity.”
Loans to manufacturers
The federal government also said part of the Presidential Palliative Loan Programme will be the disbursement of N75 billion to MSMEs and another N75 billion to manufacturers. The loans will be administered at 9% per annum.
It stated,
- “While MSMEs can access loan facilities up to N1m with a repayment period of three years, manufacturers can access up to N1bn 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.”
Backstory
In August, President Tinubu announced a slew of interventions geared at ameliorating the effects of fuel subsidy removal on businesses across the country.
The decision was in reaction to imminent industrial action and protests from organised labour groups across the country.
Part of the interventions was an N75 billion loan to 75 manufacturers at 9% per annum, and another N75 billion to SMEs and MSMEs across the country.
