FG to start providing loans to companies and presidential grants of N50,000.00 in grants
FG to start providing loans to companies and presidential grants of N50,000.00 in grants
Presidential Grants Update: Over the weekend, the federal government announced that it will begin two initiatives aimed at mitigating the effects of the elimination of fuel subsidies. The Presidential Grants Or Conditional Grant and the Presidential Palliative Loan are the two programs, according to a press release signed by Dr. Doris Uzoka-Anite, Minister of Industry, Trade, and Investment, and sent to Vanguard.
The announcement stated that According to Dr. Doris Uzoka-Anite, Minister of Industry, as part of the Presidential Conditional Grant Program, while the Federal Government would give N50,000.00 in grants especially to nano firms in each of the 774 local government areas across the country.
Through the Federal Ministry of Industry, Trade and Investment, state and local governments, federal parliamentarians, federal ministers, banks, and other stakeholders will collaborate with the federal government and the SMEDAN stands for the Nigerian Small and Medium Enterprises Development Agency.
“The ability to submit documentation of their residential or company address within the local government area, as well as pertinent personal and bank account information, should be available to applicants for nanobusiness funding. such as their Bank Verification Number, BVN, to simplify identity verification.”
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It further stated that eligible recipients might apply and obtain more information at the program’s website.
Additionally, the Presidential Palliative Loan Program was mentioned. It stated that N75 billion would be given by the Federal Government to Micro, Small, and Medium-sized Enterprises (MSMEs) in a variety of industries, with N75 billion going primarily toward manufacturers.
The beneficiaries will receive the loan at a single-digit interest rate of nine percent annually.
Manufacturers can access up to N1 billion in financing for working capital, with a one-year repayment period for working capital or a five-year repayment period for the purchase of machinery and equipment. MSMEs can receive credit facilities up to N1 million with a three-year repayment duration.
Manufacturers and MSMEs may apply for the loans by filling out the application on the program’s website.
Candidates would need to fulfill each bank’s risk assessment requirements to access the facility through their banks.
The statement ends, “The Federal Government believes these initiatives will encourage entrepreneurship and job creation as part of its commitment to promote economic development, financial empowerment, and entrepreneurship.”
