In a significant move to alleviate the economic repercussions of the fuel subsidy removal, the Federal Government has announced the commencement of its Presidential Palliative Programme, which includes the Presidential Conditional Grant Programme and the Presidential Palliative Loan Programme, with a total disbursement of ₦150 billion.
Dr. Doris Uzoka-Anite, the Minister for Industry, Trade, and Investment, disclosed that the ₦150 billion under the Presidential Palliative Loan Programme would be distributed to various businesses. The allocation breakdown indicates that micro, small, and medium-sized enterprises (MSMEs) across different sectors would receive ₦75 billion, while manufacturers would also benefit from ₦75 billion. Notably, the loan will be administered at a single-digit interest rate of nine percent per annum.
Under the Presidential Conditional Grant Programme, nano businesses operating across the 774 local government councils are set to receive ₦50,000 each as grants from the Federal Government.
The statement outlined specific eligibility criteria for both programs. MSMEs can access loan facilities of up to ₦1 million, with a repayment period of three years. Meanwhile, manufacturers have the opportunity to secure up to ₦1 billion for working capital, with a repayment span of one year for working capital or five years for the purchase of machinery and equipment.
Collaboration between the Federal Ministry of Industry, Trade, and Investment, Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), state and local governments, federal legislators, federal ministers, banks, and other stakeholders is integral to the successful implementation of these initiatives.
In order to qualify for the grants, nano business beneficiaries must be willing to provide proof of residential/business address in their local government area, along with relevant personal and bank account information, including their Bank Verification Number for identity verification.
The press release also recalled President Bola Tinubu’s nationwide broadcast in July, where he outlined plans to inject funds into Nigeria’s SMEs. The President expressed his commitment to initiating payments between July 2023 and March 2024, aiming to bolster the manufacturing sector and stimulate economic growth.
