The Minister of Industry, Trade, and Investment, Doris Aniete, has disclosed that 700,000 manufacturers and micro, small, and medium enterprises have shown interest in the Federal Government’s N150 billion loan initiative.
This loan is aimed at helping businesses cope with Nigeria’s current economic challenges.
According to The PUNCH, Aniete disclosed this during an interview on Friday, emphasizing that her ministry is making every effort to ensure the timely distribution of the funds to qualifying businesses.
Additionally, it has been reported that 630,797 citizens have already benefited from the Presidential Conditional Grant Scheme.
Launched in December 2023, the Presidential Conditional Grant Scheme is a key part of the Presidential Palliatives Programme designed to assist businesses in navigating the economic difficulties brought on by government policies.
The scheme allocates N75 billion to MSMEs and another N75 billion to the manufacturing sector.
The minister, through her Special Adviser on Strategic Communications, Terfa Gyado, indicated that the disbursement would be phased, with the first round set to begin shortly.
“Disbursement is yet to start but they are finalising the first batch. To date about 700,000 applicants have applied,” stated the minister’s aide.
He further mentioned that the government is acutely aware of the challenging business environment and established the fund to support Nigerian businesses through these tough times.
Two months ago, Aniete announced that the disbursement of the N150 billion loans to MSMEs and manufacturers was scheduled to begin by the end of July.
Eligibility criteria for MSME loans up to N1 million include having an established business operating for at least one year or a registered start-up.
Applicants must provide Corporate Affairs Commission business registration documents, present a bank statement for existing businesses or the chief promoter’s bank statement for start-ups, meet the required monthly turnover, and comply with additional bank requirements.
Regarding security, applicants must provide a personal guarantee, agree to the BVN covenant, and adhere to the global standing instruction, along with any other securities mandated by the bank.
The loan repayment is structured as monthly equal instalments over three years, with no moratorium.
“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,” the minister stated.
Asset financing includes a five-year repayment plan, while working capital financing comes with a six-month moratorium on both principal and interest, followed by a 12-month equal instalment repayment period.
