FG to Begin Disbursement of Presidential Grants and Loans in September 2024
The Federal Government of Nigeria is set to commence the disbursement of funds under the Presidential Grant and Loan Scheme to over 700 verified manufacturers and Micro, Small, and Medium Enterprises (MSMEs) nationwide starting in September. This initiative, aimed at revitalizing the economy and supporting small businesses, marks a significant step toward economic empowerment and growth.
Overview of the Presidential Grant and Loan Scheme
The Presidential Grant and Loan Scheme was launched as part of the Federal Government’s broader efforts to boost the economy, especially in the wake of challenges posed by the removal of fuel subsidies. The scheme is designed to provide financial support to small businesses and manufacturers, helping them navigate economic difficulties and stimulate growth.
Under this scheme, the government has allocated N200 billion to support growth, employment, and prosperity across Nigeria. This initiative includes both grants and loans, with a particular focus on empowering women, youth, people with disabilities, and senior citizens.
Disbursement Details
Dr. Doris Anite, the Minister of Industry, Trade, and Investment, announced during a cheque presentation in Calabar, Cross River State, that the disbursement will begin in September. According to Dr. Anite, 660,320 nano beneficiaries have already received funds under the scheme. The next phase will see the disbursement of loans to over 700,000 verified manufacturers and MSMEs following a thorough verification process.
The loans will be disbursed at a single-digit interest rate of 9% per annum, making it easier for businesses to access the funds they need to grow and sustain their operations. The initiative aims to create a more inclusive economic environment, with a selection process that prioritizes 70% women and youth, 10% people with disabilities, 5% senior citizens, and the remaining 15% allocated to other demographic groups.
Impact and Benefits
The Presidential Grant and Loan Scheme is expected to have a transformative impact on the Nigerian economy. By providing financial support to small businesses and manufacturers, the scheme will help stimulate economic activity, create jobs, and improve the livelihoods of many Nigerians.
Governor Otu of Cross River State praised the initiative, noting that the Presidential Conditional Grant has already had a positive effect on the state’s economy. He highlighted how the scheme has revitalized small businesses, offering them the necessary support to thrive in challenging economic conditions.
The interactive session held during the cheque presentation also fostered collaboration between the federal and state governments, emphasizing the importance of working together to advance economic empowerment across the nation.
What You Should Know
In April, the Federal Government announced the launch of the N200 billion scheme, which includes a N50,000 grant for each beneficiary. This grant targets one million nano businesses across Nigeria’s 774 local government areas. The government’s collaboration with state governments, federal legislators, ministers, and other stakeholders ensures a fair and transparent selection process.
In December, Dr. Doris Uzoka-Anite announced the Federal Government’s plans to launch the N75 billion Presidential Palliative Loan Programme for MSMEs, alongside another N75 billion specifically for manufacturers. These initiatives, combined with the ongoing Presidential Conditional Grant Programme, reflect the government’s commitment to supporting small businesses and manufacturers.
Conclusion
The upcoming disbursement of the Presidential Grant and Loan Scheme funds in September marks a significant milestone in the Federal Government’s efforts to empower small businesses and manufacturers across Nigeria. With over N200 billion allocated to this cause, the initiative is poised to make a substantial impact on the economy, providing much-needed financial support to those who need it most. As the disbursement process begins, eligible businesses should prepare to take advantage of this opportunity to secure their future and contribute to Nigeria’s economic growth.
