Fuel Subsidy: FG to commence disbursement of N125bn grants to SMEs, manufacturers

The federal government has announced its impending initiation of the disbursement of funds through the N125 billion Presidential Palliative Programme. The aim of this program is to mitigate the repercussions of the elimination of fuel subsidies. Doris Uzoka-Anite, the Minister for Industry, Trade and Investment, revealed in a statement on Sunday that the initiative comprises the Presidential Conditional Grant Programme and the Presidential Palliative Loan Programme.

Under the Presidential Conditional Grant Programme, the federal government intends to distribute N50,000 to nano businesses operating across the 774 local government areas. Uzoka-Anite detailed the collaborative efforts between the Federal Ministry of Industry, Trade and Investment, Small and Medium Enterprises Development Agency of Nigeria, state and local governments, federal legislators, federal ministers, banks, and other stakeholders in implementing the program. Eligible nano business beneficiaries are required to furnish evidence of their residential/business address in the local government area and provide pertinent personal and bank account information, including the Bank Verification Number for identity verification.

Moreover, the initiative plans to allocate N75 billion to micro, small, and medium-sized enterprises (MSMEs) across diverse sectors, and an additional N75 billion specifically earmarked for manufacturers. The loan facilities will be administered at a favorable single-digit interest rate of nine percent per annum. MSMEs can access loans 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 acquisition of machinery and equipment.

In July, President Bola Ahmed had unveiled the plan to disburse N125 billion to SMEs and MSMEs operating across the 744 local governments in Nigeria.