Tackling the consequences of lowering fuel subsidy in Nigeria

To tackle the consequences of fuel subsidy, the federal government has initiated two measures to mitigate the repercussions of reducing fuel subsidies. The Minister of Industry, Trade, and Investment, Dr. Doris Uzoka-Anite, announced two programmes: the Presidential Conditional Grant and the Presidential Palliative Loan, as stated in a news release.

The Presidential Conditional Grant would allocate a sum of N50,000.00 to microenterprises in each of the 774 local government areas. The recipients must provide evidence of their residence and banking information, including their Bank Verification Number (BVN). Applicants have the option to submit their application electronically via the program’s official website.

The Presidential Palliative Loan will provide a total of N75 billion to both MSMEs and manufacturers, with each sector receiving N75 billion. The loan will be subject to an annual interest rate of 9%. Micro, Small, and Medium Enterprises (MSMEs) have the option to secure loans of up to N1 million for a duration of three years. On the other hand, manufacturers have the opportunity to borrow up to N1 billion for either a one-year or five-year period. Once they have fulfilled their risk criteria, individuals can proceed to submit their applications through their respective institutions.