The government has announced the launch of a N200bn fund to assist Micro, Small, and Medium Enterprises (MSMEs) and manufacturers in Nigeria.
The Minister of Industry, Trade and Investment, Doris Uzoka-Anite, announced this on her former Twitter page on Monday.
Uzoka-Anite stated that after supporting one million nano businesses across the country, the government has decided to include both MSMEs and manufacturers in the initiative.
Earlier, the Federal Government revealed the start of the disbursement of the N50,000 Presidential Conditional Grant Scheme, also known as Trade Grants Scheme, to nano businesses nationwide, as reported by The PUNCH.
Nano businesses are defined as enterprises with one or two workers and an annual turnover of less than N3 million, according to the Small and Medium Enterprises Development Agency of Nigeria.
Anite told The PUNCH exclusively that at least 100,000 nano businesses have benefited from the ongoing initiative disbursed in batches.
In the new statement, the trade minister said the new grant will be repaid in equal monthly instalments over a 3-year term with no grace period.
According to Uzoka-Anite, N75 billion will be given to MSMEs while another N75 billion will be allocated to the manufacturing industry from the Presidential Intervention Fund.
The statement stated, “The Federal Government of Nigeria is proud to announce the operational launch of the MSME and Manufacturing segment under the prestigious Presidential 200 Billion Naira Intervention Fund.
“Now that applications for the Presidential Conditional Grant Scheme are closed, we are ready to move forward with the loan disbursement process for the MSMEs and manufacturing sectors, aimed at boosting economic growth and industrial development.
“This fund is strategically divided, dedicating N75 Billion to MSMEs and another N75 Billion to the manufacturing sector.
“We are pleased to report that the initial disbursement to nano businesses has been successful, and we are well on our way to supporting 1 million nano businesses throughout the country.
“Many beneficiaries have confirmed receipt, with many more to come,” Uzoka-Anite said.
The minister also invited eligible applicants to join the initiative by visiting the official application portal at www.fedgrantandloan.gov.ng.
“We invite eligible enterprises to join this transformative initiative. To apply, please visit our official application portal at www.fedgrantandloan.gov.ng. Additionally, applicants seeking more detailed information should visit their local state Bank of Industry branch. A comprehensive list of contact details can be found in the attached PDF document.”
She further explained that for MSME loans up to N1m, eligibility includes, “The business must be an existing business in operation for at least one year, or a registered start-up, 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 required monthly turnover and comply with other requirements as specified by the bank.”
Others are, "Agree to personally guarantee the loan, accept the BVN Covenant, follow the Global Standing Instruction, and provide other necessary securities as specified by the bank."
Manufacturers eligible for loans of up to N1bn will have the option to choose between financing for working capital or assets.
The company must maintain a business/corporate banking relationship for at least 6 months and submit additional documents as requested by the bank. Asset Financing comes with a 5-year repayment period, while Working Capital Financing includes a 6-month moratorium on principal and interest, followed by a 12-month equal installment repayment plan,
