Yemisi Izuora
Manufacturing sector is set for a relief as Federal Government is set to kickoff of its two programmes targeted at alleviating the impact of the fuel subsidy removal – the Presidential Conditional Grant Programme and the Presidential Palliative Loan Programme.
In the Presidential Conditional Grant Programme, the Federal Government will disburse a grant sum of N50,000.00 (Fifty Thousand Naira) 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 (SMEDAN) will collaborate with State and Local Governments, Federal Legislators, Federal Ministers, Banks and other Stakeholders.
To access the fund, 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.
Under the Presidential Palliative Loan Programme for MSMEs, the Federal Government will likewise disburse N75 billion to Micro, Small and Medium-sized Enterprises 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% 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 at https://www.fedgrantandloan.
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.
Additional information is available on the official website for the programmes – https://www.fedgrantandloan.