The Federal Government on Tuesday said it has perfected plans to commence the N75 billion Presidential Palliative Loan Programme for Micro, Small and Medium-sized Enterprises (MSMEs), as well as N75 billion specifically for Manufacturers.
This was even as it disclosed that it would also commence the long-awaited Presidential Conditional Grant Programme, through which the Federal Government will disburse a grant sum of N50,000.00 (Fifty Thousand Naira) to nano businesses across the 774 local government areas.
This was disclosed in an official statement signed by the Minister for Industry, Trade and Investment, Dr Doris Uzoka-Anite.
He disclosed that the Federal Government through the Federal Ministry of Industry, Trade and Investment and Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) will collaborate with State and Local Governments, Federal Legislators, Federal Ministers, Banks and other Stakeholders.
The Minister noted that the loan to both MSMEs and manufacturers shall be administered to the beneficiaries at a single-digit interest rate of 9% per annum.
According to him, ” while MSMEs can access loan facilities up to N1 million with a repayment period of three years, manufacturers can access up to N1 billion to access financing for working capital with a repayment period of 1 year for working capital or five years for the purchase of machinery and equipment.
” MSMEs and manufacturers can apply for the loans by submitting their application on the portal provided for the Programme.
The facility would be accessed through their banks, and applicants would be required to meet the risk assessment criteria of their respective banks.
” As part of its commitment to promote economic development, entrepreneurship and financial empowerment, the Federal Government believes these initiatives will encourage entrepreneurship and job creation. Additional information is available on the official website for the programmes”, he added.
