FG Unveils N5m Loan Scheme for Small Businesses, MSMEs

FG Increases Loan Ceiling to N5m for Small Businesses

“It is such collaboration that can make it work.”

The Federal Government has increased the loan ceiling to N5 million for small businesses and MSMEs, aiming to promote inclusive economic growth.

The Federal Government has announced a significant increase in the loan ceiling for small businesses to N5 million at single-digit interest rates. This move aims to promote inclusive economic growth across Nigeria, as stated by Dr. Olasupo Olusi, Managing Director and Chief Executive Officer of the Bank of Industry (BoI).

Dr. Olusi made this announcement on Friday, November 29, at a town hall sensitization event in Lagos. The event focused on the Federal Government Grant and Loan Scheme and was organized in collaboration with several stakeholders, including the Federal Ministry of Finance, the Ministry of Industry, Trade and Investments, the Presidency, and the BoI.

This development is part of the government's efforts to support Micro, Small, and Medium Enterprises (MSMEs) in Nigeria. The government has also launched other initiatives, such as the Presidential Conditional Grant Programme and the Presidential Palliative Loan Programme, to provide financial support to MSMEs.

The loan scheme offers a single-digit interest rate of 9% per annum, making it more accessible and affordable for small businesses to access credit facilities. The government's goal is to promote economic growth, entrepreneurship, and job creation by supporting MSMEs.

The Federal Government has made a significant move to support small businesses in Nigeria by increasing the loan ceiling to N5 million at single-digit interest rates. This initiative aims to promote inclusive economic growth across the country. Dr. Olasupo Olusi, Managing Director and Chief Executive Officer of the Bank of Industry (BoI), announced this development on Friday, November 29, at a town hall sensitization event in Lagos.

The event, focused on the Federal Government Grant and Loan Scheme, was organized in collaboration with several key stakeholders, including the Federal Ministry of Finance, the Ministry of Industry, Trade and Investments, the Presidency, and the BoI. This loan scheme offers a single-digit interest rate of 9% per annum, making it more accessible and affordable for small businesses to access credit facilities.

The increased loan ceiling is expected to address challenges faced by small businesses, including access to finance and infrastructure. The government's goal is to promote economic growth, entrepreneurship, and job creation by supporting MSMEs. With this initiative, the government aims to empower Micro, Small, and Medium Enterprises (MSMEs) across Nigeria, whether they're looking to reduce production costs, create jobs, enhance agricultural productivity, or contribute to economic growth.

Dr. Olusi revealed that over 800,000 Nigerians have already benefited from the Federal Government's Grant and Loan Scheme, emphasizing its inclusive nature. The initiative targets various groups, including youth, women, persons with disabilities, and all eligible Nigerians. Dr. Olusi assured, “We maintain our integrity as BoI and disburse the funds.”

The town hall meetings, aimed at promoting the scheme, are being held simultaneously in six states across Nigeria. These events provide a platform for stakeholders to discuss the initiative and its benefits.

Temitola Adekunle Johnson, Senior Special Assistant to the President on Job Creation and Micro, Small, and Medium Enterprises (MSMES), made a significant announcement. Successful applicants will now be eligible for an increased loan amount of N5 million, providing greater financial support to entrepreneurs and small business owners.

The Federal Government has made a significant move to support small businesses in Nigeria by increasing the loan ceiling to N5 million. This is a substantial jump from the previous cap of N1 million, which was set to support business operations. According to Adekunle Johnson, this loan increase is part of President Bola Tinubu's efforts to address the challenges faced by small businesses, including limited access to finance and inadequate infrastructure.

Adekunle Johnson explained the loan details, stating, “The loan is nine per cent three years tenure. A single MSME can collect up to N5 million single digit.” This initiative aims to promote inclusive economic growth across Nigeria. The government's goal is to empower Micro, Small, and Medium Enterprises (MSMEs) across Nigeria, whether they're looking to reduce production costs, create jobs, enhance agricultural productivity, or contribute to economic growth.

Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, highlighted the government's interventions to support MSMEs and the manufacturing sector. He emphasized the pivotal role of MSMEs in Nigeria's economic growth, stating that they contribute over 45 percent to the country's Gross Domestic Product. Edun reiterated the government's dedication to empowering Nigerians through financial tools and resources for sustainable growth.

In a speech delivered by Ahmed Gazalli, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, emphasized the significance of the event in achieving economic empowerment and sustainable growth in Nigeria. He described the gathering as a crucial step towards promoting a shared vision for a prosperous and inclusive economy, where every Nigerian has access to resources and opportunities needed to thrive.

Edun reiterated the government's commitment to fostering the growth of Micro, Small, and Medium Enterprises (MSMEs) and the manufacturing sector. These sectors are considered central pillars for revitalizing Nigeria's economy. By supporting MSMEs, the government aims to promote economic growth, reduce poverty, and create a favorable business environment.

As the Minister of Finance, Edun has pledged to drive Nigeria's economy to the next level. He has emphasized the need to minimize the pains associated with economic reforms and ensure that Nigerians are not left behind.

“It is common knowledge that MSMEs are the backbone of the Nigerian economy and if we do not support our MSME's to prosper, the Nigerian economy suffers,” he said.

The Minister of Finance, Wale Edun, expressed his deepest gratitude to Micro, Small, and Medium Enterprises (MSMEs) and their beneficiaries for their tireless efforts and vital contributions to Nigeria's development and stability. MSMEs play a significant role in Nigeria's economy, accounting for nearly 50% of the country's GDP and over 80% of employment.

Senator John Eno, the Minister of State for Industry, Trade, and Investment, emphasized the government's commitment to supporting initiatives that improve the welfare of Nigerians. He reaffirmed the government's dedication to assisting relevant agencies in fulfilling their mandates effectively. Eno also stressed the importance of collaboration among stakeholders to eliminate barriers hindering the growth and success of MSMEs.

To achieve this, the government is working to create an enabling environment for MSMEs to thrive. This includes providing access to finance, improving infrastructure, and promoting entrepreneurship and innovation. By supporting MSMEs, the government aims to promote economic growth, reduce poverty, and create a favorable business environment.

"It is common knowledge that MSMEs are the backbone of the Nigerian economy and if we do not support our MSME's to prosper, the Nigerian economy suffers," he said.

Eno emphasized the importance of collaboration among stakeholders to eliminate barriers hindering the growth and success of Micro, Small, and Medium Enterprises (MSMEs). He stressed that a unified approach is crucial for fostering their development, saying, “It is such collaboration that can make it work.”

Mr. John Uwajumogu, Special Adviser on Industry, Trade, and Investment, highlighted the positive impact of providing financial support to industries as a means to promote inclusive growth. He underscored the significance of empowering businesses to drive sustainable development across various sectors. This approach is essential for promoting economic growth and reducing poverty in Nigeria.

The government's efforts to support small businesses have yielded tangible results, as evident from the success stories of beneficiaries like Mr. Akor Goddy, a vegetable farmer and vendor from Badagry; Angela Christopher, a nanny; and Mr. William Asuquo, a food vendor from Isolo, Lagos. These individuals have benefited from initiatives aimed at promoting inclusive growth and sustainable development.