N200bn will be disbursed to three categories of funding by the Bank of Industry to support manufacturers and businesses across the country.
A statement by the bank explained that funds included the Presidential Conditional Grant Scheme, the FGN MSME Intervention Fund and the FGN Manufacturing Sector Fund.
According to the statement, “The Presidential Conditional Grant Scheme is a N50bn grant scheme to support eligible nano business owners.”
It said that the grant would be disbursed to a minimum of 1,000 beneficiaries (especially women and youths) across the 774 local government areas and the six council areas in the Federal Capital Territory.
The target nano businesses, according to the statement include traders, food vendors, ICT businesses, transporters, artisans, creatives, among others, stressing that it is the grant component of the initiative, as beneficiaries are not required to pay back.
To be eligible, the statement explained that the beneficiaries must own a nano business and be willing to register a business name as their business grows, and be willing to engage at least one additional staff member if the business turnover increases.
The statement said that they (beneficiaries) must be willing to provide proof of residential/business address in their Local Government Area, and provide relevant personal and bank account information, including but not limited to Bank Verification Number and National Identification Number for verification of identity, adding that the beneficiary must meet the application submission deadline for the scheme.
It said the FGN MSME Intervention Fund is a N75bn fund for Micro, Small and Medium Enterprises in Nigeria.
The statement explained that the fund would be used to support eligible micro, small and medium enterprises and serve as a cushion against the high cost of production, marketing and distribution of products arising mainly from infrastructure deficiencies and other ancillary factors involving MSMEs.
Each beneficiary, the statement said would receive a maximum of N1m, saying that the fund would be disbursed at an interest rate of nine per cent all-inclusive per annum, with a tenor of years for equipment and working capital.
The FGN Manufacturing Sector Fund, it further explained is a N75bn fund that would be used to support eligible manufacturing companies and help cushion against the high and rising costs of production, marketing and distribution of products arising from infrastructural deficiencies and other ancillary factors affecting the manufacturing sector in Nigeria.
The bank said that beneficiaries would receive up to N1bn disbursed at an interest rate of nine per cent all-inclusive per annum, with a tenor of five years for term loans, and one year for working capital.
It stated that the disbursement of the funds follows a commitment by the Federal Government to cushion the effect that recent economic reforms have had on businesses in the country, adding that following protests by organised labour demanding palliatives from the government, President Bola Tinubu, in a televised broadcast pledged that businesses across the country would be given loans and grants to help them cope with the austere business climate.
