The Federal Government has shared an update on the disbursement of the N50,000 Presidential Conditional Grant Scheme, commonly referred to as the Trade Grants Scheme, to nano businesses throughout Nigeria.
Nano businesses, as defined by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), are enterprises with one or two workers and an annual turnover of less than N3 million, and they stand as the primary beneficiaries of this initiative.
Minister of Industry, Trade, and Investment, Doris Uzoka-Anite, disclosed this development yesterday in Abuja.
Uzoka-Anite revealed that the disbursement process has already begun, with several beneficiaries having received their grants.
The phased disbursement strategy ensures that the distribution of funds is gradual and systematic.
Commenting on this development, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, said that providing this concessionary financing for manufacturers is a commendable decision.
He emphasized that the current high cost of funds, reaching as much as 30 percent interest rates, makes the availability of funds at a lower interest rate, possibly single-digit, with a longer tenure highly beneficial for manufacturers.
However, he highlighted the necessity of understanding the conditions for accessing the loan, citing past instances where stringent collateral requirements hindered intended beneficiaries from accessing loans.
Dr. Yusuf emphasized the need for the government to streamline the facility’s accessibility to entrepreneurs and manufacturers by revising stringent collateral requirements.
A significant disbursement is scheduled for Friday, April 19, 2024, wherein a substantial number of validated applicants will receive their grants.
However, the minister emphasized that not all applicants would receive their grants on this initial date, as the disbursement process is ongoing.
Meanwhile, the minister assured all verified applicants that they would eventually receive their grants in subsequent phases and urged patience as applications were diligently processed.
About Trade Grants Scheme
The Trade Grants Scheme, announced as part of the Presidential Palliatives Programme in December 2023, aims to empower nano businesses across various sectors such as trading, food services, ICT, transportation, creative arts, and artisans.
The scheme targets specific demographics, including 70 percent women and youths, 10 percent people with disabilities, 5 percent senior citizens, and the remaining 15 percent distributed to other groups.
Each beneficiary will receive a non-repayable grant of N50,000 directly into their accounts.
The program is set to impact one million small businesses across the 774 local government areas and six council areas in the Federal Capital Territory (FCT).
Minister Uzoka-Anite highlighted the program’s potential to significantly uplift communities nationwide by reaching one million beneficiaries in every local government area and the FCT.