Fuel Subsidy: FG To Disburse N125bn Grants To SMEs, Manufacturers

Fuel Subsidy: FG To Disburse N125bn Grants To SMEs, Manufacturers

The government has announced its plans to distribute funds through the Presidential Palliative Programme, which aims to counteract the effects of the fuel subsidy removal.

The Minister for Industry, Trade, and Investment, Doris Uzoka-Anite revealed that the program consists of two components: the Presidential Conditional Grant Programme and the Presidential Palliative Loan Programme.

He stated that, “In the Presidential Conditional Grant Programme, the Federal Government will disburse 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 identity verification.”

Under this initiative, N75 billion will be granted to micro, small, and medium-sized enterprises (MSMEs) in various sectors, while another N75 billion will specifically support manufacturers. The loans provided to beneficiaries will carry a low-interest rate of nine percent per annum.

It stated that, “While MSMEs can access loan facilities up to N1 million 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 is worth noting that President Bola Ahmed had previously announced in July a commitment to disburse a total of N125 billion to MSMEs across all 744 local governments in Nigeria.