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FG unveils N200 billion intervention fund for MSMEs, manufacturers - THE GUARDIAN
She said that following the ongoing disbursements targeted at supporting one million nano businesses across the country, the government has decided to include both MSMEs and manufacturers under the initiative.
According to her, N75 billion will be distributed to MSMEs while another N75 billion will be distributed to the manufacturing industry under the Presidential Intervention Fund.
“The Federal Government of Nigeria is proud to announce the operational launch of the MSME and Manufacturing segment under the prestigious Presidential N200 billion Intervention Fund. With applications for the Presidential Conditional Grant Scheme now closed, we are excited to move forward with the loan disbursement process for the MSMEs and manufacturing sectors, aimed at boosting economic growth and industrial development. We are pleased to report that the initial disbursement to nano businesses has shown great success, and we are well on our way to supporting one million nano businesses throughout the country. Thousands of beneficiaries have already confirmed receipt with many more to come,” she said.
Inviting eligible enterprises to partake in the initiative, she said they should apply only through the official application portal. “Applicants seeking more detailed information should visit their local state branch of the Bank of Industry.”
Eligibility criteria for MSME loans include, businesses must have been in operation for at least one year or a registered start-up; provide CAC business registration documents; present company bank statement and fulfill required monthly turnover. Repayment frequency is monthly equal installments with no moratorium, spanning a three-year term.
For manufacturers, they must choose between working capital or asset financing; maintain at least a six-month corporate banking relationship; and provide additional documents as required by the bank.
“Asset financing comes with a five-year repayment period and working capital financing includes a six-month moratorium on principal and interest, followed by a 12-month equal installment repayment plan,” she stated.
The minister said this new grant is running concurrently with the earlier N50, 000 Presidential Conditional Grant Scheme, also known as Trade Grants Scheme, to nano businesses nationwide. The scheme is supposed to cater to one million beneficiaries across the country. Explaining the delay in disbursement, she said it was due to some internal processes and said once disbursement is completed; all the beneficiaries will be listed on the site, adding that just 10 per cent of the one million beneficiaries have received the grants so far.
