FG raises MSMEs loans to N5m at 9% rate to enhance business growth

The Federal Government has increased the loan limit for Micro, Small, and Medium Enterprises (MSMEs) from N1 million to N5 million, offering access to funds at a single-digit interest rate of 9 percent per annum.

This initiative, aimed at fostering business growth and driving inclusive economic development, is part of the N200 billion Presidential Intervention Fund for MSMEs.

Olasupo Olusi, managing director and chief executive officer, Bank of Industry (BoI), made the announcement during a town hall sensitisation on the Federal Government’s Grant and Loan Scheme in Lagos.

The initiative seeks to address financing challenges faced by small businesses while creating jobs nationwide. MSMEs will receive N5 million each, at nine per cent interest rate for a period of three years without collateral.

The event was organised by the Federal Ministry of Finance in collaboration with the Federal Ministry of Industry, Trade and Investments, the Presidency, Bank of Industry and other stakeholders.

Olusi, represented by Umar Shekarau, executive director, MSMEs, BoI, commended President Bola Tinubu for the availability of N200 billion Presidential Intervention Fund for Micro, Small, and Medium Enterprises.

He said N75 billion out of the presidential conditional grant and loan scheme, was targeted for MSMEs, noting that the initiative was expected to create thousands of direct and indirect jobs nationwide.

The BoI boss said the fund, facilitated through the Bank of Industry nationwide, was already sitting in the bank ready to be disbursed to beneficiaries at just nine per cent interest.

He urged business owners to approach the BoI or register online, without going through intermediaries, to benefit from loans and grants.

According to him, over 800,000 Nigerians have benefited and there is room for including youths, women, physically challenged and all Nigerians.

“We maintain our integrity as BoI and disburse the funds,” he said.

The town hall is held simultaneously in six states of the federation.

Temitola Adekunle-Johnson, senior special assistant to the President on Job Creation and Micro, Small and Medium Enterprises, said that successful applicants will receive an increased loan of N5 million.

This is against the previous N1 million benchmark earmarked to boost their business operations.

He said President Tinubu gave the funds to cushion the effects of challenges experienced by businesses including access to finance, infrastructure, among others.

“The loan is nine percent three years tenure. A single MSME can collect up to N5 million single digit,” he said.