The Nigerian federal government has taken a giant step in boosting the country’s economic landscape by establishing three funds, totaling N200 billion, aimed at supporting businesses and manufacturers nationwide.
a. Presidential Conditional Grant Scheme
The first fund, the Presidential Conditional Grant Scheme, stands at N50 billion and is designed to provide support to eligible nano business owners. The scheme focuses on promoting inclusivity by targeting a minimum of 1,000 beneficiaries, especially women and youths, in each of the 774 Local Government Areas (LGAs) across the nation, including the 6 Council Areas in the Federal Capital Territory (FCT).
Benefiting Nano Businesses
Benefiting nano businesses include traders and food vendors to ICT businesses, transporters, artisans, creatives, and more. An essential aspect of this initiative is that it operates as a grant, meaning beneficiaries are not obligated to repay the funds.
Criteria for Getting the Funds
Certain criteria must be met for eligibility, such as:
- Owning a nano business
- Registering a business name as it grows
- Committing to hiring at least one additional staff member as the business turnover increases.
How Much Will A Beneficiary Get?
Each eligible beneficiary stands to receive a maximum of N1,000,000, and the funds will be disbursed at an interest rate of 9% per annum, inclusive of all charges, with a three-year tenor for equipment and working capital.
b. FGN Micro, Small and Medium Enterprise (MSME) Intervention Fund
The second fund in this triad is the FGN MSME Intervention Fund, a vital component of the economic stimulus package. With the Bank of Industry (BOI) appointed as the executing agency, this fund is ready to boost the MSME sector, recognizing its role as the bedrock of the economy.
c. FGN Manufacturing Sector Fund
The third fund, the FGN Manufacturing Sector Fund, worth N75 billion, addresses the challenges faced by Nigerian production firms. In a bid to mitigate the impact of rising costs due to infrastructural deficiencies and other factors affecting the manufacturing sector, eligible firms stand to benefit from this initiative.
Beneficiaries of the Manufacturing Sector Fund
Beneficiaries of the manufacturing sector fund could receive up to N1 billion, disbursed at an interest rate of 9% per annum, inclusive of all charges. The tenor for term loans extends to five years, while working capital loans come with a one-year tenor.
BOI’s Role in Fund Administration
The Bank of Industry (BOI) plays a special role in the effective administration of these funds, having been appointed as the executing agency. The responsibility for day-to-day administration falls under the purview of BOI, so as to ensure transparency and efficiency in the allocation and disbursement of funds.
Commitment to MSME Development
The managing director of BOI, Olasupo Olusi, emphasized the bank’s commitment to the development of Micro, Small, and Medium Enterprises (MSMEs) as the cornerstone of the economy. This commitment goes in line with President Bola Tinubu’s renewed hope agenda, reflecting a strategic vision to empower businesses and foster economic growth.
FAQs About N200 Billion Federal Support for Nigerians
This section features the frequently asked questions and answers about the N200 Billion Federal Support for Nigerians:
What is the total amount allocated for the three funds established by the Nigerian federal government?
The federal government has allocated a total of N200 billion across three funds to support businesses and manufacturers in Nigeria.
Who is the executing agency responsible for the day-to-day administration of the funds?
The Bank of Industry (BOI) has been appointed as the executing agency for the funds and is responsible for their day-to-day administration.
What is the focus of the Presidential Conditional Grant Scheme?
The scheme focuses on providing a N50 billion grant to support eligible nano business owners, with an emphasis on inclusivity, targeting women and youth beneficiaries.
How many beneficiaries is the Presidential Conditional Grant Scheme targeting across Nigeria?
The scheme aims to reach a minimum of 1,000 beneficiaries per Local Government Area (LGA) in the 774 LGAs nationwide and the 6 Council Areas in the Federal Capital Territory (FCT).
What types of nano businesses are eligible for the grant under the Presidential Conditional Grant Scheme?
Eligible nano businesses include traders, food vendors, ICT businesses, transporters, artisans, creatives, among others.
Is the Presidential Conditional Grant a loan, and are beneficiaries required to pay it back?
No, the Presidential Conditional Grant is not a loan. It operates as a grant, and beneficiaries are not required to pay back the funds.
What are the eligibility criteria for nano business owners to qualify for the grant?
Beneficiaries must own a nano business, be willing to register a business name as it grows, and commit to hiring at least one additional staff member as the business turnover increases.
Conclusion
The establishment of these funds signifies a significant stride towards economic revitalization in Nigeria. This approach, targeting specific business sectors and demographics, coupled with the commitment of the Bank of Industry, creates a framework to drive sustainable development and empower businesses across the nation.