The Minister of Industry, Trade and Investment, Doris Uzoka-Anite, made this announcement in a post on her X formerly Twitter page on Monday.
Uzoka-Anite 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 in the initiative.
Earlier in an interview, The PUNCH reported that the Federal Government announced the commencement of the disbursement of the N50,000 Presidential Conditional Grant Scheme, also known as Trade Grants Scheme, to nano businesses nationwide
Nano businesses are enterprises that have one or two workers and less than an annual turnover of N3 million, according to the Small and Medium Enterprises Development Agency of Nigeria.
Anite told The PUNCH exclusively that at least 100,000 nano businesses have enjoyed the ongoing initiative disbursed to beneficiaries in batches.
But in the new statement, the trade minister said the new grant will be recovered in monthly equal instalments with no moratorium, spanning a 3-year term.
According to Uzoka-Anite, N75 billion will be distributed to MSMEs while another N75 billion will be distributed to the manufacturing industry under the Presidential Intervention Fund.
The statement read, “The Federal Government of Nigeria is proud to announce the operational launch of the MSME and Manufacturing segment under the prestigious Presidential 200 Billion Naira 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.
“This fund is strategically divided, dedicating N75 Billion to MSMEs and another N75 Billion to the manufacturing sector.
“We are pleased to report that the initial disbursement to nano businesses has been met with success, and we are well on our way to supporting 1 million nano businesses throughout the country.
“Thousands of beneficiaries have already confirmed receipt with many more to come,” Uzoka-Anite said.
The minister further invited eligible applicants to join the initiative by visiting the official application portal at www.fedgrantandloan.gov.ng.
“We invite eligible enterprises to join this transformative initiative. To apply, please visit our official application portal at www.fedgrantandloan.gov.ng. Additionally, applicants seeking more detailed information should visit their local state Bank of Industry branch. A comprehensive list of contact details can be found in the attached PDF document.”
She further explained that loan eligibility for MSME loans up to N1m includes, “The business must be an existing business in operation for at least one year, or a registered start-up, 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 required monthly turnover and comply with other requirements as specified by the bank.”
Others are, “Provide a personal guarantee of the promoter, agree to BVN Covenant, adhere to Global Standing Instruction and other securities as required by the bank.”
For Manufacturers, the applicant eligible for loans of up to N1bn will choose between working capital or asset financing.
“The business must maintain at least a 6-month business/corporate banking relationship, and provide additional documentation as required by the bank. Asset Financing comes with a 5-year repayment period, and Working Capital Financing includes a 6-month moratorium on principal and interest, followed by a 12-month equal instalment repayment plan,” She added.
