Subsidy Removal: FG Kicks Off Distribution of Grants, Loans to Businesses

In a bid to cushion the effects of the recent fuel subsidy removal, the federal government has announced the commencement of two vital programs aimed at supporting businesses. According to a press statement from the Minister for Industry, Trade, and Investment, Dr Doris Uzoka-Anite, the initiatives are the Presidential Conditional Grant and the Presidential Palliative Loan.

Under the Presidential Conditional Grant Programme, nano businesses across the nation’s 774 local government areas will receive a grant of N50,000. To facilitate this, collaboration is expected between the Federal Ministry of Industry, Trade and Investment, the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), State and Local Governments, Federal Legislators, Federal Ministers, Banks, and other stakeholders. Eligible nano businesses are required to furnish proof of their residential or business address in their local government area, along with relevant personal and bank account information.

For the Presidential Palliative Loan Programme, the government plans to disburse N75 billion to Micro, Small, and Medium-sized Enterprises (MSMEs), with an additional N75 billion specifically allocated to Manufacturers. The loan, administered at a single-digit interest rate of 9 percent per annum, allows MSMEs to access up to N1 million with a three-year repayment period, while manufacturers can access up to N1 billion for working capital with a one-year repayment period or five years for the purchase of machinery and equipment.

Applicants for both programs can submit their applications through dedicated portals, and the funds will be accessed through their respective banks, subject to meeting the risk assessment criteria. The government believes these initiatives, rooted in its commitment to fostering economic development, entrepreneurship, and financial empowerment, will stimulate entrepreneurship and job creation across the country.