President Bola Tinubu has approved the immediate release of about N275 billion for the resuscitation of manufacturing and Micro, Small and Medium-sized Enterprises (MSME).
Tinubu stated in a countrywide broadcast on Monday that this was part of the Federal Government’s attempts to mitigate the consequences of the elimination of fuel subsidies on Nigeria and its people.
”We will spend N75 billion between July 2023 and March 2024 to enhance the manufacturing sector, increase its capacity to expand, and create good-paying jobs.
‘’Our goal is to invest 75 firms with high potential in order to jump-start sustainable economic growth, accelerate structural transformation, and boost productivity.
“Each of the 75 manufacturing enterprises will be able to access N1 billion in credit at 9% per annum, with a maximum repayment period of 60 months for long-term loans and 12 months for working capital.”
Concerning MSME, the president stated that N125 billion would be made available to revitalise the sector as a critical generator of economic growth.
”Our administration recognises the importance of micro, small, and medium-sized businesses, as well as the informal sector, as growth drivers. With N125 billion, we plan to revitalise this vital sector.
‘’We would invest N50 billion of the total on Conditional Grants to 1 million Nano companies between July 2023 and March 2024.
”Our goal is to distribute N50,000 to 1,300 Nano business owners in each of the country’s 774 local governments. Finally, this project will foster financial inclusion by integrating people into the official banking system,” he said.
Similarly, Tinubu announced another N75 billion for 100,000 MSME start-ups at 9% interest for 36 months.
‘’Similarly, we will invest N75 billion in 100,000 MSMEs and start-ups. Each company promoter would be eligible to receive between N500,000 and N1 million under this plan, with a repayment period of 36 months and an interest rate of 9% per annum.
The president stated that the government was able to save more than one trillion Naira as a result of the withdrawal of petrol subsidies, which will be used to further develop various socioeconomic areas in the country.
‘’In just over two months, we have saved over a trillion Naira that would otherwise have been squandered on an ineffective fuel subsidy that benefited mainly smugglers and fraudsters.
”That money will now be used in a more direct and beneficial manner for you and your families. For example, we will keep our promise to make college more accessible for all students and to provide loans to those who need them.
”No Nigerian student will be forced to drop out of higher study due to a lack of funds. Our commitment is to do the most good for the biggest amount of people possible. We will never deviate from this philosophy.
‘’We are also keeping an eye on the impact of the exchange rate and inflation on petrol costs. We will interfere if and when necessary.
”I tell you, my fellow countrymen and women, that we are emerging from the shadows to usher in a new and wonderful dawn,” Tinubu stated.(NAN)
