Around 700,000 manufacturers and micro, small, and medium enterprises (MSMEs) have expressed interest in the Federal Government’s N150 billion loan program, designed to help businesses in Nigeria cope with the current economic challenges.
The Minister of Industry, Trade, and Investment, Doris Aniete, revealed this in an interview with journalists on Friday, emphasizing the ministry’s commitment to ensuring the prompt release of funds to eligible businesses.
According to the minister, about 630,797 citizens have already benefitted from the Presidential Conditional Grant Scheme.
In December 2023, the Federal Government launched the Presidential Conditional Grant Scheme as part of the Presidential Palliatives Programme to support businesses impacted by government policies.
The fund 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 occur in batches, with the first batch set to begin soon.
“Disbursement has not yet started, but they are finalizing the first batch. To date, about 700,000 applicants have applied,” Gyado stated.
He noted that the government is well aware of the current business climate and created the fund to help Nigerian businesses navigate the harsh economic conditions. Two months ago, Aniete announced that the disbursement of the N150 billion loans to MSMEs and manufacturers would begin by the end of July.
To be eligible for MSME loans up to N1 million, applicants must have an existing business operating for at least one year or a registered start-up. They must provide CAC business registration documents, present the company’s bank statement for existing businesses or the chief promoter’s bank statement for start-ups, fulfill the required monthly turnover, and comply with other bank requirements.
On security, applicants must provide a personal guarantee of the promoter, agree to the BVN covenant, and adhere to global standing instruction and other bank-required securities. Repayment involves monthly equal installments with no moratorium, over a three-year term.
For manufacturers seeking loans up to N1 billion, 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 offers a five-year repayment period, while working capital financing includes a six-month moratorium on principal and interest, followed by a 12-month equal installment repayment plan.