The Federal Government of Nigeria is set to disburse funds to Micro, Small and Medium Enterprises, and the Manufacturing Businesses as well. This announcement was made known by the Honourable Minister Dr. Doris Nkiruka Uzoka-Anite MD, CFA, through one of her official social handle accounts.
The Federal Government of Nigeria has recently started funds disbursement to applicants who applied under the Presidential Conditional Grant Scheme (now closed), to support nano businesses, to revitalize businesses that have been harmfully affected by economic challenges. The Government has further taken a bold step towards promoting the growth of businesses and job creation in the country by launching the MSME and Manufacturing Fund, to provide much needed financial support to businesses in these key sectors.
The government has allocated 75 billion naira to each sector. Under the MSME component of the fund, enterprises are eligible to receive up to 1 million naira in loans, while manufacturing companies can access loans of up to 1 billion naira. This injection of capital will enable businesses to expand their operations, grow their businesses, create jobs, and contribute to the overall economic development of the country.
Eligibility and Application Process
The Loan Eligibility Criteria (for MSME loan up to 1 million Naira)
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A). Eligibility Criteria: -
- Must be an existing business in operation for at least one year, or a registered start-up.
- Provide CAC registration documents.
- Present company's Bank Statement for existing businesses or Chief Promoter's Bank Statement for start-up.
- Fulfil required monthly turnover and comply with other requirements specified by the bank.
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B). Security: -
- Provide a Personal Guarantee of the promoter
- Agree to BVN convenant
- Adhere to Global Standing Instruction (GSI) and other securities as required by the bank
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C). Repayment Frequency: -
- Monthly equal instalments with no moratorium, spanning a 3-year term.
For Manufacturers (For Loans up to 1 Billion Naira)
- Choose between Working Capital or Asset Financing.
- Maintain at least a 6-month business/corporate banking relationship.
- Provide additional documentation as required by the bank.
- Asset Financing comes with a 5-year repayment period, and Working Capital Financing includes a 6-month moratorium on principal and interest, followed by a 12-month equal. instalment repayment plan.
The ministry invites all eligible enterprises to join this transformative
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