FG to commence disbursement of presidential grants, loans to businesses
Over the weekend, the federal government announced plans to launch two initiatives to mitigate the effects of the fuel subsidy cut.
The two programmes in question are the Presidential Palliative Loan and the Presidential Conditional Grant, as stated in a press statement that was made public by Dr. Doris Uzoka-Anite, the Minister of Industry, Trade, and Investment.
Nano enterprises in each of the 774 LGAs in the nation will each get a payment of N50,000.00 from the federal government as part of the Presidential Conditional payment Programme, according to the statement.
State and local governments, federal legislators, federal ministers, banks, and other stakeholders will work together with the Federal Ministry of Industry, Trade and Investment and the Small and Medium Enterprises Development Agency of Nigeria, SMEDAN.
“In order to verify their identity, eligible nano business beneficiaries will need to supply relevant personal and bank account details, including a Bank Verification Number (BVN) and proof of residential or business address within their local government area.”
The program’s official website was also mentioned as a resource for interested parties to learn more and submit an application.
In addition, the Presidential Palliative Loan Programme announced that the Federal Government will allocate N75 billion to MSMEs in several industries, with a further N75 billion designated for manufacturers.
The recipients will be charged an annual interest rate of nine percent on the loan.
The loan facilities available to MSMEs are up to N1 million with a three-year payback duration, while manufacturers have access to up to N1 billion with a one-year working capital repayment period or a five-year machinery and equipment purchase repayment period.
“The program’s application portal is where MSMEs and manufacturers can apply for the loans.
The facility would be accessible through their banks, and candidates would have to fulfil the requirements of their banks’ risk assessments.
“The Federal Government believes these initiatives will encourage entrepreneurship and job creation,” the statement ends, adding that this is in line with its commitment to foster economic development, entrepreneurship, and financial empowerment.