The federal government has approved the disbursement of N150 billion in grants and loans to business owners nationwide. 

The government noted that the funds would be disbursed through the Presidential Conditional Grant and the Presidential Palliative Loan programmes.

The programmes, according to a statement by the Minister for Industry, Trade and Investment, Doris Uzoka-Anite, are designed to tackle the effect of the  fuel subsidy removal by President Bola Tinubu. 

“In the Presidential Conditional Grant Programme, the federal government will disburse a grant sum of N50,000.00 to nano businesses across the 774 local government areas in the country,” Ms Uzoka-Anite said. 

She added, “The 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.”

A breakdown of the N150 billion showed micro, small, and medium-sized enterprises (MSMEs) in various sectors would receive N75 billion, while manufacturers would receive N75 billion. 

The minister stated that the loan shall be administered at a single-digit interest rate of nine  per cent per annum. 

The minister further explained that 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 one year for working capital or five years for the purchase of machinery and equipment. 

The minister said MSMEs and manufacturers can apply for loans by submitting their applications on the portal set aside for the programme. 

The loans would be accessed through their banks, and each applicant is required to meet the risk assessment criteria of his or her respective bank. 

In June this year, Mr Tinubu, in a nationwide broadcast, announced plans by his administration to inject funds into Nigeria’s SMEs. 

The president also said his administration would commence the payments between July 2023 and March 2024 to strengthen the manufacturing sector.