The Federal Government is working with commercial banks to disburse a N75 billion Presidential Palliative Loan Programme to manufacturers.
The benefiting manufacturers are those that have been assessed by the banks and met all requirements for disbursement.
Each manufacturer can access up to N1 billion depending on the capacity of such business.
This followed the kick-off of two programs targeted at alleviating the impact of the fuel subsidy removal – the Presidential Palliative Loan Programme and the Presidential Conditional Grant Programme.
Both initiatives require beneficiaries to meet certain conditions precedent to approval and drawdown.
Under the Presidential Conditional Grant Programme, a benefiting nano business can access N50,000 after it has provided proof of residential/business address in their local government area, and relevant personal and bank account information, including Bank Verification Number (BVN) for verification of identity.
The Federal Government, through the Federal Ministry of Industry, Trade and Investment and Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), will work together with the State and Local Governments, Federal Legislators, Federal Ministers, Banks, and other Stakeholders to disburse the funds.
In a statement released yesterday, Minister for Industry, Trade and Investment, Dr. Doris Uzoka-Anite said that 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.
She stated that manufacturers can access up to N1 billion for working capital with a repayment period of one year or five years for the purchase of machinery and equipment.
According to her, the loan shall be administered to the beneficiaries at a single-digit interest rate of nine per cent 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 for working capital financing with a repayment period of one year or five years for the purchase of machinery and equipment,” Uzoka-Anite said.
According to her, under the Presidential Conditional Grant Programme, the Federal Government will also disburse a grant sum of N50,000.00 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, Federal Ministers, Banks, and other Stakeholders to disburse the funds,” the minister said.
She also spelled out conditions for eligible nano business beneficiaries should meet. “The rule is that such nano business must 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,” she said.
“MSMEs and manufacturers can apply for the loans by submitting their application on the portal provided for the programme. The facility would be accessed through their banks, and applicants would be required to meet the risk assessment criteria of their respective banks,” the statement said.
