The Federal Government in collaboration with the Bank of Industry (BOI) has concluded plans to commence the disbursement of N75 billion to Micro, Small and Medium Enterprises (MSMEs) across the country by January 2024.
This disclosure is contained in a statement signed by the Senior Special Assistant to the President on MSMEs and Job Creation (Office of the Vice President), Temitola Adekunle-Johnson, on Tuesday, December 19, 2023, in Abuja.
Adekunle-Johnson said the beneficiaries will enjoy a single digit interest rate of 9% on the loans, adding that the loan initiative was targeted mostly at women and youths.
FG, BOI to leverage on existing platforms
Adekunle-Johnson said that the move was part of an effort in keeping to President Bola Tinubu’s promise to support the transformation of the MSMEs space in the country.
Adekunle-Johnson explained that the Federal Government and the bank would leverage existing platforms to provide the loans to small businesses, targeting women and youths.
He added that the Tinubu-led government has collaborated with stakeholders across the public and private sectors to provide massive support for MSMEs both in grants and loans in the past.
The Presidential aide cited the recent upward review of the Access Bank loan scheme for MSMEs from N30 billion to N50 billion.
Adekunle-Johnson said,
- ”Recently, the management of Access Bank Plc approved an upward review of its loan scheme for MSMEs from N30 billion to N50 billion.
- ”The upward review, according to the bank, is to increase the number of beneficiaries of the bank’s loan scheme and impact more livelihoods.”
The statement also revealed that the present administration is committed to providing massive support to MSMEs both in grants and loans.
He said that Tinubu’s Federal Government since assumption of office collaborated with stakeholders across the public and private sectors to provide massive support for MSMEs both in grants and loans.
What you should know
- Recall that earlier in December, the Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite, had hinted that the Federal Government had perfected plans to commence the N75 billion Presidential Palliative Loan Programme for MSMEs, as well as N75 billion specifically for Manufacturers.
- This was even as she stated that the Federal Government would also commence the long-awaited Presidential Conditional Grant Programme, through which it will disburse a grant sum of N50,000 (Fifty Thousand Naira) to nano businesses across the 774 local government areas.
- She disclosed that the Federal Government through the Federal Ministry of Industry, Trade and Investment and Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) will collaborate with State and Local Governments, Federal Legislators, Federal Ministers, Banks and other Stakeholders.
- The Minister noted that the loan to both MSMEs and manufacturers shall be administered to the beneficiaries at a single-digit interest rate of 9% per annum.