FG to Disburse N150bn in Loans for MSMEs and Manufacturing

The Federal Government is set to commence the disbursement of N150 billion soft loans to micro, small and medium enterprises (MSMEs) and manufacturers by the end of July.

Minister of Industry, Trade and Investment, Doris Uzoka-Anite, disclosed that 60 percent of the proposed one million beneficiaries of the Presidential Conditional Grant had already received a financial grant of N50,000 without repayment obligations in the 774 local government areas of the country.

Uzoka-Anite stated that the disbursement process for the MSME and Manufacturing loans is in the final stages of vetting, and applications remain open with disbursement to begin by the end of July.

This initiative is part of the Federal Government's Presidential Palliative Loan Programme and Presidential Conditional Grant Programme, which were unveiled in December 2023 to support businesses navigate the economic challenges caused by the removal of fuel subsidy and the floating of the foreign exchange market.

Under the loan scheme, manufacturers can access up to N1 billion at a single-digit interest rate of 9% per annum for working capital with a repayment period of 1 to 5 years for the purchase of machinery and equipment.