In a bid to cushion the impact of the recent fuel subsidy removal, the Federal Government of Nigeria has disclosed plans to disburse funds under its newly introduced Presidential Palliative Programme.
The initiative, spearheaded by the Minister for Industry, Trade, and Investment, Dr. Doris Uzoka-Anite, aims to provide financial support to small and medium-sized enterprises (SMEs) across the country.
The Presidential Palliative Programme comprises two key components: the Presidential Conditional Grant Programme and the Presidential Palliative Loan Programme, as outlined in a statement released on Sunday.
Under the Presidential Conditional Grant Programme, the Federal Government will distribute grants of N50,000 to nano businesses operating in each of the 774 local government areas in the country. The disbursement process will involve collaboration between the Federal Ministry of Industry, Trade and Investment, the Small and Medium Enterprises Development Agency of Nigeria, state and local governments, federal legislators, federal ministers, banks, and other stakeholders.
To qualify for the grant, nano businesses must be willing to provide proof of their residential or business address within their respective local government areas. Additionally, they are required to submit relevant personal and bank account information, including the Bank Verification Number for identity verification.
In the case of the Presidential Palliative Loan Programme, the Federal Government has earmarked N75 billion for micro, small, and medium-sized enterprises across various sectors, with an additional N75 billion specifically allocated to manufacturers. Beneficiaries of the loan will enjoy a single-digit interest rate of nine per annum.
Micro, small, and medium-sized enterprises can access loan facilities of up to N1 million, with a repayment period of three years. On the other hand, manufacturers can apply for loans of up to N1 billion to finance working capital, with a repayment period of one year for working capital or five years for the purchase of machinery and equipment.
The announcement underscores the government’s commitment to supporting businesses affected by the fuel subsidy removal and fostering economic resilience among SMEs in Nigeria. As the disbursement process is set to commence soon, eligible businesses are urged to prepare the necessary documentation for a seamless application process.
