Fuel Subsidy: FG To Commence Disbursement Of N125bn Grants To SMEs, Manufacturers
The federal government says it will soon commence disbursement of funds under its N125 billion Presidential Palliative Programme, targeted at alleviating the impact of the removal of fuel subsidies.
Doris Uzoka-Anite, the Minister for Industry, Trade and Investment, disclosed this in a statement on Sunday, noting that the programmes consisted of the Presidential Conditional Grant Programme and the Presidential Palliative Loan Programme.
He stated that, “In the Presidential Conditional Grant Programme, the Federal Government will disburse N50,000 to nano businesses across the 774 local government areas.
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“The Federal Government through the Federal Ministry of Industry, Trade and Investment and Small and Medium Enterprises Development Agency of Nigeria, will collaborate with state and local governments, federal legislators, federal ministers, banks and other stakeholders.
Eligible nano business beneficiaries should 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 for identity verification.”
It will also disburse N75 billion to micro, small and medium-sized enterprises across various sectors, and N75 billion specifically to manufacturers.
The loan would be administered to the beneficiaries at a single-digit interest rate of nine per annum.
“While MSMEs can access loan facilities up to N1 million with a repayment period of three years, manufacturers can access up to N1bn to access financing for working capital with a repayment period of one year for working capital or five years for the purchase of machinery and equipment,” it stated.
Recall that in July, President Bola Ahmed unveiled plans to disburse N125 billion to SMEs and MSME businesses across the 744 local governments in Nigeria.
