The federal government has announced its plans to initiate the disbursement of funds from the N125 billion Presidential Palliative Programme, aimed at mitigating the effects of fuel subsidy removal.
In a statement released by Doris Uzoka-Anite, the Minister for Industry, Trade and Investment, it was revealed that the programme consists of two components: the Presidential Conditional Grant Programme and the Presidential Palliative Loan Programme.
Under the Presidential Conditional Grant Programme, the government will distribute N50,000 to nano businesses across all 774 local government areas. The Federal Ministry of Industry, Trade and Investment, along with the Small and Medium Enterprises Development Agency of Nigeria, will collaborate with state and local governments, federal legislators, federal ministers, banks, and other stakeholders for the implementation of the programme.
Eligible nano business beneficiaries will need to provide proof of their residential or business address in their respective local government areas, as well as relevant personal and bank account information, including their Bank Verification Number (BVN) for identity verification.
Additionally, the government will allocate N75 billion to micro, small, and medium-sized enterprises (MSMEs) in various sectors, and another N75 billion specifically for manufacturers. The loans will be provided at a low-interest rate of nine percent per annum.
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, or up to five years for the purchase of machinery and equipment.
It is worth noting that in July, President Bola Ahmed unveiled the plan to disburse N125 billion to SMEs and MSME businesses across all 744 local governments in Nigeria.