The Federal Government has partnered with commercial institutions to provide manufacturers with N75 billion through the Presidential Palliative Loan Programme.
Beneficiary manufacturers are those that have undergone evaluation by the financial institutions and fulfilled all criteria for disbursement.
Each manufacturer is eligible for a maximum of N1 billion, contingent upon the scale of their operations.
In an effort to mitigate the effects of the fuel subsidy removal, the Presidential Palliative Loan Programme and the Presidential Conditional Grant Programme had just commenced.
Beneficiaries of both initiatives are obligated to fulfill specific prerequisites prior to receiving approval or withdrawal.
A benefiting nanobusiness is eligible to receive N50,000 through the Presidential Conditional Grant Programme upon providing evidence of a residential or business address within their local government area, as well as pertinent personal and bank account details (including a Bank Verification Number (BVN) for identity verification).
The Federal Ministry of Industry, Trade and Investment and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), on behalf of the Federal Government, shall collaborate with Federal Legislators, Federal Ministers, Banks, and other Stakeholders in order to allocate the funds.
Yesterday, Dr. Doris Uzoka-Anite, Minister for Industry, Trade, and Investment, issued a statement stating that the Federal Government believes these initiatives will foster entrepreneurship and job creation in furtherance of its mission to promote financial empowerment, economic development, and entrepreneurship.
She stated that manufacturers can obtain working capital of up to N1 billion with a one-year or five-year repayment period in exchange for machinery and equipment purchases.
As per her assertion, the beneficiaries shall be granted the loan with an annual interest rate of nine percent, calculated in the single digits.
Uzoka-Anite stated, “MSMEs have the ability to obtain loan facilities of up to N1 million, subject to a three-year repayment period. In contrast, manufacturers have the capacity to obtain working capital financing of up to N1 billion, with repayment terms of either one year or five years, specifically for purchasing of machinery and equipment.”
In accordance with her assertion, the Federal Government will additionally allocate a grant sum of N50,000.00 to nano enterprises spanning the 774 local government areas via the Presidential Conditional Grant Programme.
“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 disburse the funds,” the minister instructed.
Additionally, she outlined the requirements that must be fulfilled by eligible nanobusiness beneficiaries. “According to the regulation, nano-businesses are obligated to furnish evidence of their residential or commercial address within their local government area, as well as pertinent personal and bank account details (including a Bank Verification Number (BVN) for identity verification),” she explained.
“MSMEs and manufacturers are eligible to apply for the loans through the program’s designated application portal.” “Applicants would be required to satisfy the risk assessment criteria of their respective banks in order to access the facility via their banks,” the statement stated.