• Saturday, July 13, 2024
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FG begins loan payment to manufacturers, MSMEs to bolster economy

FG begins loan payment to manufacturers, MSMEs to bolster economy

By Favour Okpale

The Federal Government says it is commencing the disbursement of loans to the micro, small and medium enterprises (MSMEs) and manufacturing sectors, under the Presidential N200 billion Intervention Fund, created to help Nigerian businesses navigate the harsh economic conditions.

The fund dedicates N75bn to MSMEs and another N75bn to the manufacturing sector.

Doris Uzoka-Anite, minister of industry, trade and investment, said on Monday, that with applications for the Presidential Conditional Grant Scheme now closed, the government has begun the loan disbursement process for the MSMEs and manufacturing sectors, aimed at boosting economic growth and industrial development.

“We are pleased to report that the initial disbursement to nanobusinesses has been met with success, and we are well on our way to supporting one million nanobusinesses throughout the country. Thousands of beneficiaries have already confirmed receipts, with many more to come.

“We invite eligible enterprises to join this transformative initiative. To apply, please visit our official application portal at www.fedgrantandloan.gov.ng.

Additionally, applicants seeking more detailed information should visit their local state Bank of Industry branch. A comprehensive list of contact details can be found in the attached PDF document.”

To be eligible for MSME loans up to N1m, applicants must have an existing business in operation for at least one year, or a registered start-up, provide CAC business registration documents, present the company’s bank statement for existing businesses or the chief promoter’s bank statement for start-ups, fulfil the required monthly turnover and comply with other requirements as specified by the bank.

On security, applicants must provide a personal guarantee of the promoter, agree to the BVN covenant, and adhere to global standing instruction (GSI) and other securities as required by the bank.

On repayment frequency: monthly equal instalments with no moratorium, spanning a three-year term.

“For manufacturers, for loans up to N1bn, applicants must choose between working capital or asset financing, maintain at least a 6-month business/corporate banking relationship, and provide additional documentation as required by the bank.

“Asset financing comes with a five-year repayment period, and working capital financing includes a 6-month moratorium on principal and interest, followed by a 12-month equal instalment repayment plan, the minister said in a statement.