.As Tinubu raises MSME loans to N5m
The federal government says it has concluded plans to float the Power Finance Corporation in 2025 as part of efforts to pool funds into the sector.
This is even as debts owed by electricity consumers hover around N2 trillion.
Tope Fasua, Special Adviser to the President on Economic Affairs, revealed this on Friday, while leading a team of officials to evaluate the economic performance in year 2024 at the Presidential Villa, Abuja.
At the event themed, “Achieving Faster Economic Growth in the year, 2025 and Beyond,” the government explained that the Power Finance Corporation is meant to drive investments in the sector.
He disclosed that the government will target specific products from states for exports in 2025, noting that with about $4.5 billion trade surplus in 2024, Nigeria is targeting 6.4 percent growth in 2025.
He also announced that President Bola Tinubu has increased the Micro, Small and Medium-sized Enterprises (MSMEs), loans from N1 million to N5million at the single digit of 9 percent due to the current high rate of inflation, plaguing business activities.
As part of measures to encourage more Nigerians into owning their own businesses, he said the government has set aside about N198 billion for the MSMEs, while more business hubs will be built in 2025, in addition to the 10 hubs already built across the country.
“We are targeting about 240,400 jobs, with a grant of up to N400,000 to support the MSMEs per person in 2025.
The funds will be targeted particularly at those in the beauty abd awareness businesses. With N198b set aside for MSMEs for 2025, there will be massive activities in the MSMEs sector across the country.
“At the MSME award for June 27th next year, each selected MSME will get a shop, house or car. We are not saying that we will raise the shops, cars or houses; we have already secured these properties and they will be distributed at the MSME event in June, next year.
“The federal government is going to embark on massive deployment of meters, as consumers are owing about N2trillion unpaid bills in the sector.
“ In 2025, the Discos will be held responsible for powers, that is why we are deploying more meters
“We have funding from AFDB and the United States Trade Development Agency to develop small hydro electric power, as well as to study shortfalls in power supply to industrial clusters to enhance low cost energy.
“The power Finance Corporation to be launched in 2025 will operate like the India Power Finance Corporation, which has over $20 billion to finance the power sector, you can imagine if we are able to raise about 10% of that amount to generate our own power sector.”
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