The federal government has initiated the loan disbursement process targeted at micro, small, and medium enterprises (MSMEs) as well as the manufacturing sector, in a bid to bolster economic growth and industrial development.
This initiative, spearheaded by the Ministry of Industry, Trade, and Investment, aims to provide crucial financial support to these vital sectors of the economy.
Background
In line with its commitment to economic revitalization and industrial advancement, the Federal Government of Nigeria has launched the MSME and Manufacturing segment under the Presidential 200 Billion Naira Intervention Fund.
This strategic allocation of funds underscores the government’s determination to foster growth and innovation within these key sectors.
Allocation of Funds
A total of N75 billion has been earmarked to bolster MSMEs, while an equivalent amount has been allocated to fortify the manufacturing sector.
This substantial financial injection is expected to provide a significant impetus to business expansion, job creation, and overall economic prosperity.
Loan Disbursement Process
The initial phase of loan disbursement, targeted at nano businesses, has already shown promising results, with thousands of beneficiaries having confirmed receipt of funds.
The government is steadfast in its commitment to supporting up to 1 million nano businesses across the nation, thereby catalyzing grassroots economic development.
Full Statement
In a statement on Monday, the ministry of industry, trade, and investment, Doris Aniete said, “The Federal Government of Nigeria is proud to announce the operational launch of the MSME and Manufacturing segment under the prestigious Presidential 200 Billion Naira Intervention Fund,” the ministry said.
“With applications for the Presidential Conditional Grant Scheme now closed, we are excited to move forward with the loan disbursement process for the MSME and Manufacturing sectors, aimed at boosting economic growth and industrial development.
“This fund is strategically divided, dedicating 75 Billion Naira to MSMEs and another 75 Billion to the manufacturing sector.
“We are pleased to report that the initial disbursement to nano businesses has been met with success, and we are well on our way to supporting 1 million nano businesses throughout the country.
“Thousands of beneficiaries have already confirmed receipt with many more to come.
“We invite eligible enterprises to join this transformative initiative. To apply, please visit our official application portal at www.fedgrantandloan.gov.ng.
“Additionally, applicants seeking more detailed information should visit their local state Bank of Industry branch.”
Application Process
Eligible enterprises are encouraged to take advantage of this transformative initiative by applying through the official application portal at www.fedgrantandloan.gov.ng.
Detailed information regarding the application process can also be obtained from local Bank of Industry branches across the country.
Criteria for MSME Loans (Up to N1M)
Eligibility Criteria:
- Must be an existing business operational for at least one year or a registered start-up.
- Provide CAC business registration documents.
- Present the company’s bank statement for existing businesses or the chief promoter’s bank statement for start-ups.
- Fulfil required monthly turnover and comply with other specified bank requirements.
Security:
- Provide a personal guarantee of the promoter.
- Agree to bank verification number (BVN) covenant.
- Adhere to global standing instruction (GSI) and other required securities.
Repayment Frequency:
- Monthly equal installments over a 3-year term with no moratorium.
Criteria for Manufacturer Loans (Up to N1B)
Eligibility Criteria:
- Maintain at least a 6-month business/corporate banking relationship.
- Provide additional documentation as required by the bank.
Repayment Terms:
- Choose between working capital or asset financing.
- Asset financing: 5-year repayment period.
- Working capital financing: 6-month moratorium on principal and interest, followed by a 12-month equal installment repayment plan.
How To Apply
- Log onto https://loan.fedgrantandloan.gov.ng/
- Create an account by signing up with your basic details.
- Provide detailed business information.
- Submit necessary business documents.
- Outline how the loan will benefit your business.
Upon meeting the eligibility criteria, the disbursement of the loan will be facilitated by your respective bank, providing essential financial support for business growth and sustainability.
The government’s proactive measures to stimulate economic activity and support the growth of MSMEs and manufacturing industries underscore its commitment to fostering sustainable development and prosperity for all Nigerians.