The Federal Government has announced the kickoff of two programmes targeted at alleviating the impact of the fuel subsidy removal including the Presidential Conditional Grant Programme and the Presidential Palliative Loan Programme.
The announcement is contained in a statement by Dr Doris Uzoka-Anite, CFA, the Minister for Industry, Trade and Investment
The grant programme will disburse a grant sum of N50 million to nano businesses across the 774 local government areas.
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, ministers, banks and other stakeholders.
Eligible nano business beneficiaries should:
● Be willing to provide proof of residential/business address in their local government area, and
● Provide relevant personal and bank account information, including Bank Verification Number (BVN) for verification of identity.
Presidential Palliative Loan Programme for MSMEs
The Presidential Palliative Loan Programme will likewise disburse N75 billion to Micro, Small and Medium-sized Enterprises across various sectors and N75 billion specifically to manufacturers.
The loan shall be administered to the beneficiaries at a single-digit interest rate of 9% per annum.
While MSMEs can access loan facilities up to N1 million with a repayment period of three years, manufacturers can access up to N1 billion to access financing for working capital with a repayment period of 1 year for working capital or five years for the purchase of machinery and equipment.
The facility would be accessed through their banks, and applicants would be required to meet the risk assessment criteria of their respective banks.
As part of its commitment to promote economic development, entrepreneurship and financial empowerment, the Federal Government believes these initiatives will encourage entrepreneurship and job creation.
For additional information click on the official website for the programmes.