Nigeria’s N150bn Loan Scheme: 700,000 Businesses Express Interest in Economic Boost
The Nigerian Federal Government’s N150bn loan scheme, aimed at supporting businesses navigate the current economic crunch, has received an overwhelming response from 700,000 manufacturers and micro, small, and medium enterprises (MSMEs). The Minister of Industry, Trade, and Investment, Doris Aniete, revealed this in a recent chat with our correspondent, stressing that the ministry is working tirelessly to ensure prompt release of the fund to eligible businesses.
The Presidential Conditional Grant Scheme, launched in December 2023, is 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 disbursement will be done in batches, with the first set of disbursement expected to commence soon.
According to Terfa Gyado, the Special Adviser on Strategic Communications, about 700,000 applicants have expressed interest in the scheme, with 630,797 citizens already benefiting from the Presidential Conditional Grant Scheme. The government is well aware of the current business climate and created the fund to help Nigerian businesses navigate the harsh economic conditions.
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 must also provide CAC business registration documents, present the company’s bank statement for existing businesses or the chief promoter’s bank statement for start-ups, and comply with other requirements as specified by the bank.
For manufacturers, loans up to N1bn can be obtained through either working capital or asset financing. The repayment frequency for both options involves monthly equal instalments with no moratorium, spanning a three-year term. Working capital financing, however, includes a six-month moratorium on principal and interest, followed by a 12-month equal instalment repayment plan.
The Nigerian government’s initiative aims to provide much-needed relief to businesses struggling to stay afloat amidst the economic challenges. With the disbursement process set to commence soon, entrepreneurs and business owners can expect a significant boost to their operations, helping them navigate the current economic climate and build a stronger future.
