Nigerian government has started the disbursement of N200 billion to 75 key companies and MSMEs. Explore how this initiative supports economic growth.
Next month, 75 major companies will be receiving single-digit loans amounting to N1 billion as a daring attempt by Minister of Industry, Trade and Investment Doris Uzoka-Anite to boost the Nigerian economy was declared on Monday.
As part of a wider effort to promote economic growth, an extra N125 billion will be distributed in the form of loans targeted at Micro, Small and Medium Enterprises (MSMEs).
During her visit with Cross River State Governor Bassey Otu, Dr. Uzoka-Anite disclosed that the Presidential Conditional Loans and Grant Scheme would provide financial aid to MSME beneficiaries and potential loan recipients in response to economic turmoil and increasing costs of living.
With a budgeted N200 billion intended for this initiative, individuals will receive support through grants or loans as needed.
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According to the minister, more than 700,000 applications have been verified which now allows for upcoming disbursements.
She also mentioned that over 660,320 nano beneficiaries (which is over 60% of the one million targeted) have already received their payments in all of Nigeria’s local governments. These micro-beneficiaries were given N50,000 each as part of government efforts to strengthen small businesses nationwide.
Dr. Uzoka-Anite stressed that the project aims to achieve more than just dispensing financial assistance – it also seeks to revive hope, rehabilitate lives and strengthen our obligation towards the social compact with our citizens.
She accentuated the revolutionary influence of this program, which is devised to bolster enterprises, boost output levels and ultimately create an upsurge in employment prospects.
Nigeria has earmarked N75 billion for manufacturers with a cap of up to N200 million per company. This funding will enable them to expand their operations, fuel job creation and economic growth.
Additionally, the remaining sum of N125 billion is directed towards supporting Micro Small and Medium Enterprises (MSMEs), which are integral components that underpin Nigeria’s economy.
While visiting, Governor Otu commended the initiative and its positive effects on Cross River State. He expressed that “The Presidential Conditional Grant has been a crucial support system for numerous citizens of ours.
We’ve witnessed flourishing small businesses and individuals regaining their economic stability. This program is genuinely changing lives in Cross River State”.
Additionally, the minister emphasized that the government is dedicated to maintaining transparency and accountability in managing these initiatives. They urged leaders within communities and civil society organizations alike to take an active role in monitoring the execution of palliative measures.
President Bola Ahmed Tinubu unveiled a special grant program last year with the objective of alleviating the economic crisis and facilitating major corporations’ enlargement of production, thereby fostering employment growth and recovering Nigeria’s economy.
With the implementation of the program, it is anticipated that its influence will reach all parts of the country, delivering essential support and rejuvenation to the economy.
