The Bank of Industry (BOI) has revealed its intention to disburse a total of N200 billion across three funding categories aimed at supporting manufacturers and small and medium-sized enterprises (SMEs) nationwide.
In a statement released by the development bank, it outlined the funds to include the Presidential Conditional Grant Scheme, the FGN MSME Intervention Fund, and the FGN Manufacturing Sector Fund.
The Presidential Conditional Grant Scheme, valued at N50 billion, is designed to support eligible nano business owners. This grant, targeted at a minimum of 1,000 beneficiaries, particularly women and youths, will span the 774 local government areas and six council areas in the Federal Capital Territory. Beneficiaries are not required to repay the grant.
Eligible nano businesses encompass a variety of sectors such as traders, food vendors, ICT businesses, transporters, artisans, and creatives. To qualify, applicants must own a nano business, be willing to register a business name as their business grows, and commit to engaging at least one additional staff member as business turnover increases. Additionally, applicants must provide proof of residential/business address in their Local Government Area, along with relevant personal and bank account information.
The FGN MSME Intervention Fund, amounting to N75 billion, is dedicated to supporting Micro, Small, and Medium Enterprises in Nigeria. Each beneficiary stands to receive a maximum of N1 million at an interest rate of nine percent per annum, inclusive of all charges, with a tenure of years for equipment and working capital.
Likewise, the FGN Manufacturing Sector Fund, also valued at N75 billion, is set to provide support to eligible manufacturing companies. This fund aims to mitigate the challenges stemming from infrastructural deficiencies and other ancillary factors affecting the manufacturing sector in Nigeria. Beneficiaries will receive up to N1 billion at an interest rate of nine percent per annum, inclusive of all charges, with a tenure of five years for term loans and one year for working capital.
The decision to disburse these funds underscores the Federal Government’s commitment to alleviating the impact of recent economic reforms on businesses across the nation. In response to demands for palliatives from organized labor, President Bola Tinubu pledged during a televised broadcast to provide loans and grants to support businesses grappling with the prevailing austere business climate.
