The Federal Government has announced its plans to launch two programmes aimed at mitigating the impact of the removal of fuel subsidies. The Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite, revealed that the programmes will consist of a presidential conditional grant and a presidential palliative loan.
Under the presidential conditional grant programme, the government will distribute a grant of N50,000.00 to nano businesses in all 774 local government areas of the country. The program will be carried out in collaboration with state and local governments, federal legislators, ministers, banks, and other stakeholders. To be eligible for the grant, nano business owners must provide proof of their residential or business address, as well as personal and bank account information, including their Bank Verification Number (BVN), for verification purposes. Additional information and the application process can be found on the dedicated website for the programme.
As for the presidential palliative loan programme, the government will allocate N75 billion to Micro, Small, and Medium-sized Enterprises (MSMEs) across various sectors, with an additional N75 billion specifically set aside for manufacturers. The loans will carry a single-digit interest rate of nine percent per annum. MSMEs can access loans of up to N1 million, with a repayment period of three years. Manufacturers, on the other hand, can access loans of up to N1 billion, to be used for working capital or for the purchase of machinery and equipment. The repayment periods for manufacturers are one year for working capital or five years for the purchase of machinery and equipment.
These initiatives aim to ease the burden on businesses and individuals affected by the removal of fuel subsidies. The government encourages eligible beneficiaries to take advantage of the programmes to receive the necessary support for their businesses.
