The federal government has, through the Federal Ministry of Industry, Trade, and Investment (FMITI), established three funds totalling N200 billion to support businesses across Nigeria, at nine per cent interest, to be disbursed by the Bank of Industry (BOI).
In a similar vein, the Corporate Affairs Commission (CAC), in partnership with Moniepoint Micro Finance Bank, yesterday, registered an unprecedented two million Micro, Small and Medium Enterprises (MSMEs), effectively formalising their operations in the country.
The three funds established by the federal government were the Presidential Conditional Grant Scheme (PCGS), the FGN MSME Intervention Fund, and the FGN Manufacturing Sector Fund. BOI was appointed as the executing agency for the funds, and vested with the responsibility for their day-to-day administration.
Managing Director/Chief Executive Officer of BOI, Dr. Olasupo Olusi, in a statement, reiterated BOI’s commitment to the development of MSMEs as the bedrock of the economy, in line with President Bola Tinubu’s Renewed Hope Agenda
Olusi stated, “The Presidential Conditional Grant Scheme (PCGS) is a N50 billion grant scheme to support eligible Nano Business owners. The grant will be disbursed to a minimum of 1,000 beneficiaries, especially women and youths, per Local Government Area (LGA) in the 774 LGAs across the nation and the six Council Areas in the FCT.
“The target Nano businesses include traders, food vendors, ICT businesses, transporters, artisans, and 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, provide relevant personal and bank account information, including but not limited to, Bank Verification Number (BVN) and National Identification Number (NIN) for verification of identity. The beneficiary must meet the application submission deadline for the scheme.”
Another component of the fund is the FGN MSME Intervention Fund, which is a N75 billion fund, for Micro, Small and Medium Enterprises (MSMEs) in Nigeria, according to the statement.
It said the fund would be used to support eligible MSMEs and serve as a cushion against the high cost of production, marketing and distribution of products arising mainly from infrastructure deficiencies and other ancillary factors involving MSMEs in Nigeria.
Each beneficiary would receive a maximum of N1 million. The fund would be disbursed at an interest rate of nine per cent all-inclusive per annum, with a tenor of three years for equipment and working capital.
According to Olusi, the FGN Manufacturing Sector Fund is a N75 billion fund that would be used to support eligible manufacturing companies and help cushion against the high and rising costs of production, marketing and distribution of products arising from infrastructural deficiencies and other ancillary factors affecting the manufacturing sector in Nigeria. He said beneficiaries would receive up to N1 billion, disbursed at an interest rate of nine per cent all-inclusive per annum, with a tenor of five years for term loans, and one year for working capital.