The manufacturing sector is poised for relief as the federal government initiates two programs aimed at mitigating the impact of fuel subsidy removal—the Presidential Conditional Grant Programme and the Presidential Palliative Loan Programme.
Presidential Conditional Grant Programme
- Nano businesses across the 774 local government areas will receive a grant sum of N50,000.00 each.
- 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.
- Eligible nano business beneficiaries must provide proof of residential or business address in their local government area.
- Relevant personal and bank account information, including Bank Verification Number (BVN), is required for identity verification.
The federal government will disburse N75 billion to Micro, Small, and Medium-sized Enterprises (MSMEs) across various sectors, and an additional N75 billion specifically to manufacturers.
How Businesses Can Access Funds
- Beneficiaries will receive loans at a single-digit interest rate of nine per cent per annum.
- MSMEs can access loan facilities up to N1 million with a repayment period of three years.
- Manufacturers can access up to N1 billion for working capital, with a repayment period of one year, or for the purchase of machinery and equipment, with a repayment period of five years.
The implementation of these programs is anticipated to provide much-needed financial support to small businesses, fostering resilience and growth within the manufacturing sector.
By collaborating with various stakeholders, the federal government aims to ensure effective dissemination of funds and equitable access to support across all regions.