Minister of Industry, Trade and Investment, Doris Aniete has said that about 700,000 manufacturers and micro, small, and medium-sized firms have indicated their desire to be beneficiary of the N150 billion loan scheme of the federal government, which is aims to support Nigerian businesses.
This was disclosed in a statement by the Minister, stressing that the ministry was working tirelessly to ensure prompt release of the fund to eligible businesses, according The Punch.
Findings shows that 630,797 citizens have benefitted from the Presidential Conditional Grant Scheme.
The Federal Government introduced the Presidential Conditional Grant Scheme in December 2023 as a component of the Presidential Palliatives Program, with the goal of assisting businesses in navigating the economic downturn brought on by government policies.
fund dedicates N75bn to MSMEs and another N75bn to the manufacturing sector.
The minister, speaking through her Special Adviser, Strategic Communications, Terfa Gyado, hinted that the disbursement would be done in batches with the first set of disbursement to commence soon.
“Disbursement is yet to start but they are finalising the first batch. To date about 700,000 applicants have applied,” the minister’s aide stated.
He pointed out that the government established the fund to assist Nigerian companies in navigating the challenging economic conditions since it was well aware of the current business environment.
Aniete announced two months ago that by the end of July, N150 billion in loans would be disbursed to manufacturers and micro, small, and medium-sized businesses.
To be eligible for MSME loans up to N1m, applicants must have an existing business in operation for at least one year, or a registered start-up.
They are to provide CAC business registration documents, present the company’s bank statement for existing businesses or the chief promoter’s bank statement for start-ups, fulfil the required monthly turnover and comply with other requirements as specified by the bank.
Regarding security, applicants need to furnish a promoter personal guarantee, consent to the BVN covenant, follow global standing instructions, and submit any additional securities that the bank requests.
“For manufacturers, for loans up to N1bn, applicants must choose between working capital or asset financing, maintain at least a six-month business/corporate banking relationship, and provide additional documentation as required by the bank.
“Asset financing comes with a five-year repayment period, and working capital financing includes a six-month moratorium on principal and interest, followed by a 12-month equal instalment repayment plan,” the minister had said in a statement.
