Fuel Subsidy: FG to commence disbursement of grants to SMEs

Minister for Industry, Trade and Investment, Dr Doris Uzoka-Anite

The Federal Government says it will soon commence disbursement of funds under its Presidential Palliative Programme, targeted at alleviating the impact of the fuel subsidy removal.

A statement on Sunday by the Minister for Industry, Trade and Investment, Dr Doris Uzoka-Anite, said the programmes consisted of the Presidential Conditional Grant Programme and the Presidential Palliative Loan Programme.

It stated, “In the Presidential Conditional Grant Programme, the Federal Government will disburse a grant sum of N50,000 to nano businesses across the 774 local government areas.

“The Federal Government through the Federal Ministry of Industry, Trade and Investment and Small and Medium Enterprises Development Agency of Nigeria will collaborate with state and local governments, federal legislators, federal ministers, banks and other stakeholders.

“Eligible nano business beneficiaries should be willing to provide proof of residential/business address in their local government area, and provide relevant personal and bank account information, including Bank Verification Number for verification of identity.”

For the Presidential Palliative Loan Programme, it said, the Federal Government would disburse N75bn to micro, small and medium-sized enterprises across various sectors, and N75bn specifically to manufacturers.

The loan would be administered to the beneficiaries at a single-digit interest rate of nine per annum.

‘While MSMEs can access loan facilities up to N1m with a repayment period of three years, manufacturers can access up to N1bn to access financing for working capital with a repayment period of one year for working capital or five years for the purchase of machinery and equipment,” it stated.

Recall that in July, President Bola Ahmed unveiled plans to disburse N125 billion to SMEs and MSME businesses across the 744 local governments in Nigeria.