The Bank of Industry has announced its plan to disburse a total of N200bn in funding to support manufacturers and businesses nationwide. This funding will be divided into three categories, namely the Presidential Conditional Grant Scheme, the FGN MSME Intervention Fund, and the FGN Manufacturing Sector Fund.
The Presidential Conditional Grant Scheme, amounting to N50bn, aims to assist eligible nano business owners, particularly women and youths, across the 774 local government areas and the six council areas in the Federal Capital Territory.
Recipients are not required to repay this grant, and eligible businesses include traders, food vendors, ICT businesses, transporters, artisans, creatives, among others.
To qualify for the scheme, beneficiaries must own a nano business, be willing to register a business name, engage at least one additional staff member as business turnover increases, provide proof of residential/business address, and furnish relevant personal and bank account information.
The FGN MSME Intervention Fund, totaling N75bn, targets Micro, Small, and Medium Enterprises (MSMEs) in Nigeria. This fund aims to support eligible MSMEs against the high cost of production, marketing, and distribution, primarily due to infrastructure deficiencies. Beneficiaries will receive a maximum of N1m each at an interest rate of nine per cent per annum, with a tenor of years for equipment and working capital.
Lastly, the FGN Manufacturing Sector Fund, also amounting to N75bn, will aid eligible manufacturing companies facing challenges due to infrastructural deficiencies. Beneficiaries will receive up to N1bn each at an interest rate of nine per cent per annum, with a tenor of five years for term loans and one year for working capital.
These funds are part of the government’s commitment to mitigate the impact of recent economic reforms on businesses in the country. President Bola Tinubu, in a televised broadcast, assured businesses of loans and grants to help them navigate the challenging business environment. The Bank of Industry has been tasked with the responsibility of administering these funds on a day-to-day basis.