'Apply Now' - FG to disburse N150bn to traders, small businesses in 774 LGAs, sets eligibility

The Nigerian government is set to start disbursement of N50,000 to small businesses in all the 774 local government areas in the country as part of efforts to ease the impact of subsidy removal.

The Minister of Industry, Trade and Investment, Doris Uzok-Anite, disclosed this in a statement.

She stated that the scheme consists of the Presidential Conditional Grant for Programme and the Presidential Palliative Loan Programme targeted at Manufacturers, SMEs, MSMEs, and businesses.

According to the minister’s statement, the federal government will disburse N50,000 to small and nano businesses nationwide across all 774 local government areas.

Vanguard reports that the statement said the eligible businesses should be willing to provide proof of residential or business address in their local governments and other relevant documents.

The statement said: “The Federal Government through the Federal Ministry of Industry, Trade and Investment and Small and Medium Enterprises Development Agency of Nigeria will collaborate with state and local governments, federal legislators, federal ministers, banks and other stakeholders.”

“Eligible nano business beneficiaries should be willing to provide proof of residential/business address in their local government area and provide relevant personal and bank account information, including Bank Verification Number for identity verification.”

The statement also said that part of the Presidential Palliative Loan Programme would allocate N75 billion to MSMEs and another N75 billion to manufacturers, with an annual interest rate of 9%.

The minister’s statement said MSMEs can access loan facilities up to N1 million with a three-year repayment period, and manufacturers can obtain an N1 billion financing facility for working capital with a repayment period of one year or five years for the machinery purchase.

In August 2023, President Bola Tinubu announced several interventions to ease the biting effects of petrol subsidy removal on businesses across Nigeria.

The decision came as labour unions threatened to embark on industrial actions over the pains caused by the subsidy removal.

The federal government promised to inject N75 billion into 75 manufacturing firms at a 9% annual interest and another N75 billion into SMEs and MSMEs. Part of the interventions was an N75 billion loan to 75 manufacturers at 9% per annum and another N75 billion to SMEs and MSMEs nationwide.