The federal government has announced that it will soon begin the disbursement of funds for its N125 billion Presidential Palliative Programme, aimed at mitigating the impact of the removal of fuel subsidies.
In a statement by the Minister for Industry, Trade, and Investment, Doris Uzoka-Anite, the programme comprises two key components: the Presidential Conditional Grant Programme and the Presidential Palliative Loan Programme.
Under the Presidential Conditional Grant Programme, the federal government will distribute N50,000 to nano businesses across all 774 local government areas. Working in collaboration with the Federal Ministry of Industry, Trade, and Investment and the Small and Medium Enterprises Development Agency of Nigeria, the government will partner with state and local governments, federal legislators, federal ministers, banks, and other stakeholders.
Eligible nano business beneficiaries must provide proof of their residential or business address within their respective local government areas, along with personal and bank account information, including their Bank Verification Number, for identity verification.
Additionally, the Presidential Palliative Loan Programme will disburse N75 billion to micro, small, and medium-sized enterprises (MSMEs) across various sectors, with a separate N75 billion specifically allocated to manufacturers. These loans will be administered at a single-digit interest rate of nine percent per annum.
MSMEs will have access to loan facilities of up to N1 million, with a repayment period of three years. Manufacturers, on the other hand, can access up to N1 billion for working capital financing, with a repayment period of one year for working capital expenses and five years for the purchase of machinery and equipment.
The Explainer learned that the initiative seeks to provide much-needed financial support to businesses and stimulate economic growth across various sectors. The single-digit interest rate and flexible repayment terms are designed to facilitate access to capital and encourage investment in business operations, expansion, and job creation.
President Bola Ahmed in July unveiled plans to disburse N125 billion to SMEs and MSMEs in all 744 local governments in Nigeria.
