The Bank of Industry has announced plans to disburse a total of N200 billion across three funding categories to support manufacturers and businesses nationwide.
According to a statement by the development bank, the funds comprise the Presidential Conditional Grant Scheme, the FGN MSME Intervention Fund, and the FGN Manufacturing Sector Fund.
The Presidential Conditional Grant Scheme, totaling N50 billion, is designated to aid eligible nano business owners. It aims to disburse grants to a minimum of 1,000 beneficiaries, with a special focus on women and youths across the 774 local government areas and six council areas in the Federal Capital Territory. Recipients, including traders, food vendors, ICT businesses, transporters, artisans, and creatives, are not required to repay the grant. However, they must meet specific eligibility criteria, including business registration and engagement of additional staff as their business expands.
The FGN MSME Intervention Fund, valued at N75 billion, targets Micro, Small, and Medium Enterprises (MSMEs) in Nigeria. Each eligible beneficiary can receive up to N1 million at an interest rate of nine percent per annum, aimed to alleviate the cost of production, marketing, and distribution, especially due to infrastructure deficiencies and other associated challenges.
Likewise, the FGN Manufacturing Sector Fund, also worth N75 billion, seeks to support eligible manufacturing companies facing similar challenges. Beneficiaries may receive up to N1 billion at an interest rate of nine percent per annum. The fund aims to mitigate the high and rising production costs attributed to infrastructural deficiencies and other related factors affecting the manufacturing sector.
The decision to disburse these funds stems from the Federal Government's commitment to alleviate the adverse effects of recent economic reforms on businesses. President Bola Tinubu, in a televised address following protests by organized labor, assured businesses of loans and grants to navigate the challenging business landscape.
The Bank of Industry has been tasked with administering these funds on a day-to-day basis, ensuring effective implementation and support for businesses across various sectors.
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