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FG Set To Disburse N200 Billion To Manufacturers, Traders, Vendors, Others To Boost Local Production
Eko Hot Blog reports that the Federal Government through the Bank of Industry (BOI) has announced that it will award three funding categories totalling N200 billion to assist companies and manufacturers nationwide.
A statement from the development bank mentioned that the money was from the FGN MSME Intervention Fund, the FGN Manufacturing Sector Fund, and the Presidential Conditional Grant Scheme.
The bank detailed that a N50 billion Presidential Conditional Grant Scheme is also available to help qualified owners of nano businesses.
Bank Of Industry HeadquartersA minimum of 1,000 beneficiaries—particularly women and young people—will receive the grant throughout the 774 local government areas and the six council areas in the federal capital.
The statement read in part, “The target nano businesses include: traders, food vendors, ICT businesses, transporters, artisans, creatives, among others. This is the grant component of the initiative, as beneficiaries are not required to pay back.
“To be eligible, beneficiaries must own a nano business and, be willing to register a business name as their business grows, and be willing to engage at least one additional staff member if the business turnover increases.
“They must also be willing to provide proof of residential/business address in their Local Government Area, and provide relevant personal and bank account information, including but not limited to Bank Verification Number and National Identification Number for verification of identity. The beneficiary must meet the application submission deadline for the scheme.”
The FGN MSME Intervention Fund is a N75bn fund for Micro, Small and Medium Enterprises in Nigeria.
According to BoI, the fund will assist qualifying micro, small, and medium-sized businesses and operate as a safety net against the high costs associated with product production, marketing, and distribution, which are mostly caused by insufficient infrastructure and other related issues affecting MSMEs.
It said that the fund will be distributed at an interest rate of nine percent all-inclusive each year, with a tenor of years for working capital and equipment, and that each beneficiary would get a maximum of N1 million.
The FGN Manufacturing Sector Fund is a N75 billion fund that will be used to assist qualified manufacturing firms and act as a buffer against the high and rising costs of production, marketing, and distribution that result from inadequate infrastructure and other unrelated factors that have an impact on Nigeria’s manufacturing sector.
The bank stated that recipients will have up to N1 billion disbursed at an annual all-inclusive interest rate of 9 percent for term loans with a five-year tenor and a one-year for working capital.
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