By Damilola Aina
About 700,000 manufacturers and micro, small and medium enterprises have expressed intention to become beneficiaries of the Federal Government’s N150bn loan to help businesses in Nigeria navigate the current economic crunch.
The Minister of Industry, Trade and Investment, Doris Aniete, revealed this in a chat with our correspondent on Friday, stressing that the ministry was working tirelessly to ensure prompt release of the fund to eligible businesses.
This came as 630,797 citizens have benefitted from the Presidential Conditional Grant Scheme
In December 2023, the Federal Government unveiled the Presidential Conditional Grant Scheme as part of the Presidential Palliatives Programme aimed at supporting businesses to navigate the economic crunch caused by government policies.
The fund dedicates N75bn to MSMEs and another N75bn to the manufacturing sector.
The minister, speaking through her Special Adviser, Strategic Communications, Terfa Gyado, hinted that the disbursement would be done in batches with the first set of disbursement to commence soon.
“Disbursement is yet to start but they are finalising the first batch. To date about 700,000 applicants have applied,” the minister’s aide stated
He noted that the government was well aware of the current business climate and created the fund to help Nigerian businesses navigate the harsh economic conditions.
Two months ago, Aniete said the disbursement of N150bn loans to micro, small and medium enterprises and manufacturers would commence by the end of July.
To be eligible for MSME loans up to N1m, applicants must have an existing business in operation for at least one year, or a registered start-up.
They are to provide CAC business registration documents, present the company’s bank statement for existing businesses or the chief promoter’s bank statement for start-ups, fulfil the required monthly turnover and comply with other requirements as specified by the bank.
On security, applicants must provide a personal guarantee of the promoter, agree to the BVN covenant, and adhere to global standing instruction and other securities as required by the bank.
On repayment frequency, it entails a monthly equal instalments with no moratorium, spanning a three-year term.
“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.
“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 instalment repayment plan,” the minister had said in a statement. (Punch)