The Multi-Layer Intervention Programme in Nigeria: An Overview for Manufacturers and MSMEs
In July, President Bola Ahmed Tinubu authorised the allocation of N275 billion in palliative relief funds to alleviate the distress caused by the reduction in petrol subsidies.
Yesterday, Dr Doris Uzoka-Anite, the Minister for Industry, Trade, and Investment, declared that the multi-layered intervention programme will initiate the presidency’s conditional grant and presidential palliative loan.
To avail facilities under the initiatives, manufacturers, MSMEs, and nano-companies must adhere to the risk assessment norms set by their banks.
The government proposed providing N75 billion in loans at single-digit interest rates to 75 large corporations, with each company receiving N1 billion at an interest rate of 9.0%.
Micro, small, and medium enterprises (MSMEs) were granted a total of N125 billion. 50 billion Naira worth of conditional incentives are available for 1.0 million nano-firms across 774 local governments. Within 774 local governments, a total of 1,300 nano-enterprises will each get a sum of N50,000.
In addition, a total of 100,000 micro, small, and medium enterprises (MSMEs) will receive a sum of N75 billion. The loan will be provided at a fixed interest rate of 9.0%. Each individual company will be eligible for a loan amount ranging from N500,000 to N1 million. Manufacturers have the potential to acquire a maximum of N1 billion, contingent upon their production capability.
Manufacturers must submit a risk assessment on their financial accounts by banks to obtain a loan. They must also provide confirmation of their intention and capability to repay the loans. Additionally, manufacturers must alter their turnover figures to estimate their company’s capacity and volume and fulfil any other specified requirements.
Uzoka-Anite announced that under the Presidential Conditional Grant Programme, the Federal Government will provide a sum of N50,000.00 to nano-enterprises in each of the 774 local government areas. The Federal Ministry of Industry, Trade, and Investment and SMEDAN will collaborate with state and local governments, federal legislators, federal ministers, banks, and other stakeholders. Furthermore, the Federal Government has allocated a budget of N200 billion for the military and poverty eradication.
The eligible beneficiaries of the nano-business must furnish evidence of their residential or company address within their local government region, together with crucial personal and banking details, including BVN, for the purpose of identification verification.
The minister additionally stated that the Federal Government will allocate a sum of N75 billion to micro, small, and medium-sized enterprises (MSMEs) in various sectors and N75 billion to manufacturers through the Presidential Palliative Loan Programme.