Subsidy Removal: FG Begins Disbursement of Palliative Loans, Grants - The Top Society

Subsidy Removal: FG Begins Disbursement of Palliative Loans, Grants

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The Federal Government has announced two crucial palliative programs designed to alleviate the repercussions of the recent fuel subsidy removal. According to the Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite, these initiatives aim to provide support to businesses affected by the subsidy removal.
Under the first program, known as the Presidential Conditional Grant, the federal government will disburse a grant of N50,000.00 to nano businesses across the 774 local government areas in Nigeria. To facilitate this initiative, collaboration is set to take place between the Federal Ministry of Industry, Trade and Investment, Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), state and local governments, federal legislators, ministers, banks, and other stakeholders.
Dr. Uzoka-Anite outlined the eligibility criteria for nano business beneficiaries, stating that they should be willing to provide proof of residential/business address in their local government area, along with relevant personal and bank account information, including the Bank Verification Number (BVN) for identity verification. Interested parties can find additional information and apply through the dedicated website for the program.
Palliative loan

She said: “In the presidential conditional grant programme, the federal government will disburse a grant  of N50,000.00 to nano businesses across the 774 local government areas in the country.

“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, ministers, banks and other stakeholders.

“The 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, BVN, for verification of identity.”

Related: The Rising Trend of Loan Sharks in Nigeria: A Deep Dive into Borrowing Behaviors, Challenges

The second initiative, termed the Presidential Palliative Loan Program, involves the disbursement of N75 billion to Micro, Small, and Medium-sized Enterprises (MSMEs) across various sectors, with an additional N75 billion specifically allocated to manufacturers. The loans will be administered at a single-digit interest rate of nine percent per annum.
She outlined: “The loan shall be administered to the beneficiaries at a single-digit interest rate of nine per cent per annum.

“While MSMEs can access loan facilities up to N1 million with a repayment period of three years, manufacturers can access up to N1 billion to access financing for working capital with a repayment period of 1 year for working capital or five years for the purchase of machinery and equipment.

For MSMEs, loan facilities of up to N1 million can be accessed with a repayment period of three years. On the other hand, manufacturers can secure up to N1 billion for working capital, with a repayment period of one year for working capital needs or five years for the purchase of machinery and equipment.
These programs are part of the government’s broader strategy to mitigate the impact of fuel subsidy removal on businesses and stimulate economic activities across various sectors. As the nation navigates these changes, the focus remains on supporting businesses, especially those at the grassroots level, to ensure sustained economic growth and resilience.
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