The Bank of Industry has announced its plan to allocate a substantial sum of N200 billion to support manufacturers and businesses nationwide, split into three distinct funding categories.
In a recent statement, the development bank outlined the funds, which include the Presidential Conditional Grant Scheme, the FGN MSME Intervention Fund, and the FGN Manufacturing Sector Fund.
The Presidential Conditional Grant Scheme, amounting to N50 billion, targets eligible nanobusiness proprietors.
This grant is designated for dispersal among at least 1,000 beneficiaries, with a particular emphasis on women and youths, spanning all 774 local government areas and the six council areas within the Federal Capital Territory.
Describing the scheme, the statement highlights its inclusivity, encompassing a diverse array of nanobusinesses such as traders, food vendors, ICT enterprises, transporters, artisans, and creatives. Notably, beneficiaries are exempt from repayment obligations.
To qualify, prospective recipients must own a nanobusiness and commit to registering a business name as their enterprise expands. Additionally, they must be prepared to hire at least one additional staff member should their business witness growth.
Eligibility also hinges on furnishing proof of residence or business address within their local government area, along with pertinent personal and bank account details, including the Bank Verification Number and National Identification Number for identity verification. Timely submission of applications is imperative for consideration.
The FGN MSME Intervention Fund, amounting to N75 billion, is earmarked for Micro, Small, and Medium Enterprises (MSMEs) across Nigeria.
This fund is intended to provide financial relief to eligible MSMEs, mitigating the impact of high production, marketing, and distribution costs primarily attributed to infrastructure deficiencies and related ancillary factors.
Each beneficiary stands to receive a maximum of N1 million, with disbursements subject to a nine percent all-inclusive annual interest rate and a specified tenor for equipment and working capital.
Similarly, the FGN Manufacturing Sector Fund, also valued at N75 billion, is designed to support eligible manufacturing firms, alleviating the burden of escalating production, marketing, and distribution costs stemming from infrastructural inadequacies and ancillary challenges within Nigeria’s manufacturing sector.
Under this initiative, beneficiaries could secure up to N1 billion, with disbursements subject to a nine percent all-inclusive annual interest rate and specific tenors for term loans and working capital.
This disbursement of funds aligns with the Nigerian government’s commitment to ameliorate the adverse effects of recent economic reforms on businesses nationwide.