FG Unveils Conditional Grant and Palliative Loan Initiatives to Mitigate Fuel Subsidy Impact
The federal government has unveiled two groundbreaking programs aimed at cushioning the impact of the fuel subsidy removal. In a press statement released by Dr. Doris Uzoka-Anite, the Minister for Industry, Trade, and Investment, the initiatives promise to alleviate economic pressures through targeted support for businesses.
The first of these initiatives, the Presidential Conditional Grant Programme, is set to disburse a substantial grant of N50,000.00 to nano businesses spanning the 774 local government areas nationwide.
To qualify, nano businesses must furnish proof of their residential or business address within their respective local government areas.
Additionally, applicants are required to provide pertinent personal and bank account details, including the Bank Verification Number (BVN) for identity verification.
The Federal Ministry of Industry, Trade, and Investment, in collaboration with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), will work closely with state and local governments, federal legislators, ministers, banks, and other stakeholders to ensure the success of this program.
Eligible beneficiaries seeking more information and wishing to apply can do so on the dedicated programme website.
The second initiative, the Presidential Palliative Loan Programme, is poised to inject N150 billion into the economy. Of this, N75 billion is earmarked for Micro, Small, and Medium-sized Enterprises (MSMEs) across diverse sectors, while the remaining N75 billion will be specifically allocated to manufacturers.
Impressively, the loans will be administered at a single-digit interest rate of 9 percent per annum.
For MSMEs, the loan facilities range up to N1 million with a three-year repayment period. Manufacturers, on the other hand, can access up to N1 billion for working capital, with a flexible repayment period of one year for working capital or five years for the acquisition of machinery and equipment.
The application process is streamlined through a dedicated portal, and the funds will be accessible through various banks, subject to the risk assessment criteria of each respective bank.
Source: Vanguard
