President Bola Tinubu says the federal government would ensure it provides the sum of N75 billion for the manufacturing sector between July 2023 and March 2024.

Speaking in a nationwide televised broadcast on Monday, Mr Tinubu explained that the scheme would help the manufacturing sector, increase its capacity to expand and create good-paying jobs.

He explained that the scheme would fund a total of 75 enterprises that would have to access N1 billion credit at 9 per cent per annum with a maximum of 60 months repayment for long-term loans and 12 months for working capital.

“To strengthen the manufacturing sector, increase its capacity to expand and create good-paying jobs, we are going to spend N75 billion between July 2023 and March 2024. Our objective is to fund 75 enterprises with great potential to kick-start a sustainable economic growth, accelerate structural transformation and improve productivity.

“Each of the 75 manufacturing enterprises will be able to access N1billion credit at 9% per annum with maximum of 60 months repayment for long-term loans and 12 months for working capital.

SMEs to get N125 billion

The president also promised that the Small and midsize enterprises (SMEs) sector in the country should have access to a grant of N125 billion.

He said out of the sum, N50 billion will go on conditional grant to 1 million nano businesses between “now” and March 2024.

According to him, the scheme would further drive financial inclusion by onboarding beneficiaries into the formal banking system.

Speaking further, the president said his government would fund 100,000 Micro, Small and Medium Enterprises (MSME) sub-sector to the economy and start-ups with N75 billion in which each beneficiary will be able to get between N500,000 to N1million at 9 per cent interest per annum and a repayment period of 36 months.

“Our administration recognises the importance of micro, small and medium-sized enterprises and the informal sector as drivers of growth. We are going to energise this very important sector with N125 billion.

“Out of the sum, we will spend N50 billion on Conditional Grant to 1 million nano businesses between now and March 2024. Our target is to give N50,000 each to 1,300 nano business owners in each of the 774 local governments across the country.

“Ultimately, this programme will further drive financial inclusion by onboarding beneficiaries into the formal banking system. In like manner, we will fund 100,000 MSMEs and start-ups with N75 billion. Under this scheme, each enterprise promoter will be able to get between N500,000 to N1 million at 9% interest per annum and a repayment period of 36 months.”