Nigeria Initiates Loan and Grant Disbursement for SMEs

Nigeria Initiates Loan and Grant Disbursement for SMEs
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The federal government of Nigeria has officially launched two palliative programs, namely the Presidential Conditional Grant Programme and the Presidential Palliative Loan Programme, aimed at providing financial relief to businesses in the country.

In a statement released on Sunday by the Minister for Industry, Trade, and Investment, Dr. Doris Uzoka-Anite, these initiatives are part of the government’s ongoing efforts to mitigate the impact of subsidy removal.

President Bola Ahmed Tinubu, in his July palliative plans, pledged to allocate N125 billion in funding for Micro, Small, and Medium-Sized Enterprises (MSMEs).

Under the Presidential Conditional Grant Programme, the statement revealed that a sum of N50,000 will be disbursed to nano businesses across the 774 local government areas in the country. Eligible nano business beneficiaries are required to provide proof of residential or business address in their local government area, along with relevant personal and bank account information, including the Bank Verification Number (BVN) for identity verification.

As for the Presidential Palliative Loan Programme, Minister Uzoka-Anite specified that a total of N75 billion would be allocated to Micro, Small, and Medium-sized Enterprises (MSMEs) across various sectors, with an additional N75 billion earmarked for manufacturers. The loans will be administered at a single-digit interest rate of nine percent per annum.

MSMEs can access loan facilities of up to N1 million with a repayment period of three years, while manufacturers can apply for up to N1 billion for working capital, with a repayment period of one year for working capital or five years for the purchase of machinery and equipment.

Minister Uzoka-Anite encouraged interested individuals to apply for the loans by submitting their applications through a designated portal for the program. She expressed optimism that these initiatives would stimulate entrepreneurship and job creation in the Nigerian economy.

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