Subsidy Removal: FG to Fund Nano Businesses, SMEs

In a move aimed at alleviating the impact of the removal of fuel subsidies, the Federal Government of Nigerian has said that it has perfected plans to commence disbursement of funds under its N125 billion Presidential Palliative Programme to fund nano businesses across the country.

The Minister for Industry, Trade and Investment, Doris Uzoka-Anite, who made this known on Sunday said the funds will also be disbursed N75 billion to micro, small and medium-sized enterprises across various sectors, and N75 billion specifically to manufacturers.

She noted that the programmes would be domiciled under the Presidential Conditional Grant Programme and the Presidential Palliative Loan Programme, and would be introduced across the 774 Local Government Areas.

Uzoka-Anite said, “The Federal Government through the Federal Ministry of Industry, Trade and Investment and Small and Medium Enterprises Development Agency of Nigeria, will collaborate with state and local governments, federal legislators, federal 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 for identity verification.”

The loan would be administered to the beneficiaries at a single-digit interest rate of nine per annum.

“While MSMEs can access loan facilities up to N1 million with a repayment period of three years, manufacturers can access up to N1bn 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,” it stated.

President Bola Ahmed, had in July, unveiled plans to disburse N125 billion to SMEs and MSME businesses across the 744 local governments in Nigeria.

Leave a Reply

Your email address will not be published. Required fields are marked *