700,000 manufacturers, MSMEs register for FG N150bn loan – Minister

• Published On: 11 August 2024 at 15:24

Doris Aniete, Minister of Industry, Trade, and Investment, has stated that about 700,000 manufacturers and micro, small, and medium-sized organizations have expressed a willingness to benefit from the federal government's N150 billion loan initiative, which aims to boost Nigerian businesses.

According to The Punch, the Minister stated this in a statement, emphasizing that the ministry was working tirelessly to ensure that the fund was released to eligible businesses as soon as possible.

The findings demonstrate that 630,797 persons benefited from the Presidential Conditional Grant Scheme.

The Federal Government established the Presidential Conditional Grant Scheme in December 2023 as part of the Presidential Palliatives Program, with the purpose of aiding businesses in navigating the economic downturn caused by government policies.

The fund allocates N75 billion to MSMEs and an additional N75 billion to the manufacturing sector.

The minister, addressing through her Special Adviser for Strategic Communications, Terfa Gyado, hinted that the payout will be done in stages, with the first set of disbursements beginning soon.

"Disbursement has yet to begin, but they are completing the first batch. The minister's aide indicated that over 700,000 individuals have applied thus far.

He stated that the government established the fund to assist Nigerian businesses in navigating the difficult economic conditions, as it was well aware of the current business environment.

Aniete said two months ago that by the end of July, N150 billion in loans would be disbursed to manufacturers, micro, small, and medium-sized firms.

Applicants for MSME loans up to N1m must have a business that has been in existence for at least one year or be a registered start-up.

They must furnish CAC business registration paperwork, provide the company's bank statement for existing firms or the chief promoter's bank statement for start-ups, meet the required monthly turnover, and follow any additional bank-specific requirements.

Regarding security, applicants must provide a promoter personal guarantee, agree to the BVN covenant, follow global standing guidelines, and provide any extra securities requested by the bank.

"For loans up to N1 billion, manufacturers must choose between working capital and asset finance, maintain a six-month business/corporate banking relationship, and produce extra paperwork as requested by the bank.

"Asset financing comes with a five-year repayment period, and working capital financing includes a six-month moratorium on principal and interest, followed by a 12-month equal instalment repayment plan," a statement from the minister said.