The Nigerian government has announced plans to commence the disbursement of funds totaling N125 billion as part of its Presidential Palliative Program. This initiative aims to cushion the impact of the recent removal of fuel subsidies.
Doris Uzoka-Anite, the Minister for Industry, Trade, and Investment, revealed the details of the programme in a statement issued on Sunday. The comprehensive scheme includes the Presidential Conditional Grant Programme and the Presidential Palliative Loan Programme.
Uzoka-Anite outlined the specifics, stating, “In the Presidential Conditional Grant Programme, the Federal Government will disburse N50,000 to nanobusinesses across the 774 local government areas.” She emphasized collaboration between various government entities, including the Federal Ministry of Industry, Trade, and Investment, the Small and Medium Enterprises Development Agency of Nigeria, state and local governments, federal legislators, federal ministers, banks, and other stakeholders.
To qualify for the grant, nanobusiness beneficiaries are required to provide proof of residential or business address in their respective local government areas, along with relevant personal and bank account information, including the bank verification number for identity verification.
Additionally, the government plans to allocate N75 billion to micro, small, and medium-sized enterprises (MSMEs) across various sectors, with a special allocation of N75 billion specifically for manufacturers. The loans will be offered at a single-digit interest rate of nine percent per year.
The statement explained, “MSMEs can access loan facilities up to N1 million with a repayment period of three years, while manufacturers can access up to N1 billion for working capital with a repayment period of one year for working capital or five years for the purchase of machinery and equipment.”
The move comes after President Bola Ahmed Tinubu unveiled the initiative in July, with the aim of disbursing N125 billion to SMEs and MSMEs across the 744 local governments in Nigeria. The forthcoming disbursement is expected to provide crucial financial support to businesses grappling with the economic challenges posed by the fuel subsidy removal.
