FG Starts MSME, Manufacturing Sector Loan Disbursement Procedure

ACCORDING to the federal government, the loan disbursement process for the manufacturing and micro, small, and medium-sized enterprise (MSME) sectors has started.

The effort is meant to stimulate industrial development and economic progress, according to a statement released on Monday by the minister of trade, industry, and investment's office.

The ministry claims that N75 billion has been set aside for MSMEs and the manufacturing industry, respectively.

“The Federal Government of Nigeria is proud to announce the operational launch of the MSME and Manufacturing segment under the prestigious Presidential 200 Billion Naira Intervention Fund," the ministry said.

"With applications for the Presidential Conditional Grant Scheme now closed, we are excited to move forward with the loan disbursement process for the MSME and Manufacturing sectors, aimed at boosting economic growth and industrial development.

“This fund is strategically divided, dedicating 75 Billion Naira to MSMEs and another 75 Billion to the manufacturing sector.

“We are pleased to report that the initial disbursement to nano businesses has been met with success, and we are well on our way to supporting 1 million nano businesses throughout the country.

“Thousands of beneficiaries have already confirmed receipt with many more to come.

“We invite eligible enterprises to join this transformative initiative. To apply, please visit our official application portal at www.fedgrantandloan.gov.ng.

“Additionally, applicants seeking more detailed information should visit their local state Bank of Industry branch.”

CRITERIA FOR N1 MILLION AND UP MSME LOANS

Qualification Standards

✓ Must be a registered start-up or an established company that has been in operation for at least a year.

✓ Give the CAC the business registration paperwork.

✓ For established firms, provide the bank statement of the company; for startups, present the bank statement of the primary promoter.

✓ Meet the monthly turnover requirement and adhere to any additional conditions stipulated by the bank.

SECURITIES

✓ Give a promoter's personal guarantee.

✓ Accept the covenant regarding the bank verification number (BVN).

✓ Comply with the bank's requirements regarding other securities and global standing instructions (GSI).

REPAIR QUANTITY

Equal monthly installments for a three-year period, with no moratorium.

MANUFACTURER LOANS UP TO N1B CRITERIA

✓ Select between asset financing and working capital.

✓ Keep up a business/corporate banking relationship for a minimum of six months.

✓ Provide more documentation if the bank asks for it.

Working capital finance has a 6-month principal and interest moratorium followed by a 12-month equal installment repayment schedule, whereas asset financing has a 5-year repayment period.

The Presidential Conditional Grant Scheme payout process to verified applicants was initiated by FG on April 16.

On October 17, 2023, President Bola Tinubu announced the initiative to mitigate the impact of other economic shocks and the elimination of the gasoline subsidy.