The Federal Government of Nigeria has taken a significant step towards supporting the growth of Micro, Small, and Medium Enterprises (MSMEs) and manufacturers by unveiling a substantial Public Intervention Fund (PIF) worth N200 billion.
The announcement, made by the Minister of Industry, Trade, and Investment, Doris Uzoka-Anite, highlights the government’s commitment to fostering economic stability and sustainable business practices across various sectors.
Fund Allocation
The PIF will be distributed equitably, with N75 billion earmarked for MSMEs and an additional N75 billion allocated to manufacturers.
This allocation strategy reflects the government’s strategic approach to addressing the diverse needs of businesses operating within the Nigerian economy.
Application Process
- Prospective applicants are encouraged to take advantage of this initiative by submitting their applications through the official portal at www.fedgrantandloan.gov.ng.
- Additionally, for further guidance and information, individuals can visit local Bank of Industry branches, which serve as valuable resources for navigating the application process effectively.
Eligibility Criteria
To qualify for the PIF, applicants must satisfy certain eligibility criteria, including:
- Operating an existing business with at least one year of operations or possessing a registered start-up.
- Presenting valid business registration documents from the Corporate Affairs Commission (CAC).
- Providing a company bank statement for existing businesses or a chief promoter’s bank statement for start-ups.
- Meeting the required monthly turnover and other specific requirements stipulated by the bank.
Security Requirements
Applicants are required to provide security for the funds received through the PIF, which includes:
- Offering a personal guarantee.
- Agreeing to a Bank Verification Number (BVN) covenant.
- Adhering to the Global Standing Instruction (GSI) and other security measures set by the bank.
Repayment Terms
The repayment terms for the PIF offer flexibility and support for businesses, including:
- Option to choose between Working Capital or Asset Financing.
- A 5-year repayment period for asset financing.
- A 6-month moratorium on both principal and interest for working capital financing, followed by a 12-month equal installment repayment plan.
The repayment terms are designed to accommodate the diverse needs and circumstances of businesses receiving funding through the PIF, ensuring that they can effectively leverage the support provided by the government to drive growth and sustainability in the Nigerian business landscape.