Shortly after Bola Tinubu assumed the presidency of Nigeria, the fuel subsidy was eliminated, affecting not only regular citizens but also business owners.
Seeing the impact this has caused, the Federal Government has said that it is making plans to start distributing funds through its Presidential Palliative Programme. According to them, the fuel subsidy removal has caused a dent in business for many because they weren’t ready for the impact, and sending some support could do a thing.
According to the Minister for Industry, Trade and Investment, Dr Doris Uzoka-Anite, the programs comprise the Presidential Conditional Grant and the Presidential Palliative Loan. She stated that within the Presidential Conditional Grant Programme, the Federal Government intends to allocate a grant amount of N50,000 to nano businesses across all 774 local government areas.
Furthermore, she said “The Federal Government through the Federal Ministry of Industry, Trade and Investment and Small and Medium Enterprises Development Agency of Nigeria will collaborate with state and local governments, federal legislators, federal ministers, banks and other stakeholders. However, Eligible nano business beneficiaries should be willing to provide proof of residential/business address in their local government area, and provide relevant personal and bank account information, including Bank Verification Number for verification of identity.”
Also, the FG stated that within the Presidential Palliative Loan Programme, it plans to allocate N75 billion to micro, small, and medium-sized enterprises across different sectors, along with an additional N75 billion specifically earmarked for manufacturers. The loans will be disbursed to beneficiaries at a low-interest rate of nine percent per annum. This way, the loan can reach all concerned people and also be convenient for them to take.
It was also confirmed by the Federal Government that micro, small, and medium-sized enterprises (MSMEs) can obtain loan facilities of up to N1 million, repayable over three years. Meanwhile, manufacturers can access loans of up to N1 billion for working capital needs, repayable within one year, or for machinery and equipment purchases, repayable within five years.
