The Bank of Industry (BOI) has unveiled plans to disburse a total of N200 billion across three funding categories aimed at bolstering manufacturers and businesses nationwide.
In a recent statement, the development bank outlined the allocation of funds, including the Presidential Conditional Grant Scheme, the FGN MSME Intervention Fund, and the FGN Manufacturing Sector Fund.
The Presidential Conditional Grant Scheme, valued at N50 billion, is designated to support eligible nano business owners. Targeting a minimum of 1,000 beneficiaries, particularly women and youths, across Nigeria’s 774 local government areas and six council areas in the Federal Capital Territory, this grant component of the initiative exempts beneficiaries from repayment obligations.
Eligible beneficiaries are required to own a nano business and commit to registering a business name as their enterprise expands. Additionally, applicants must be prepared to hire at least one additional staff member as their business grows, furnish proof of residential/business address, and provide relevant personal and bank account details for identity verification.
The FGN MSME Intervention Fund, amounting to N75 billion, is earmarked for Micro, Small, and Medium Enterprises (MSMEs) in the country. This fund seeks to mitigate the challenges posed by high production, marketing, and distribution costs resulting from infrastructure deficiencies and other ancillary factors affecting MSMEs.
Each eligible beneficiary stands to receive a maximum of N1 million from the fund, with disbursements offered at an interest rate of nine percent per annum inclusive, and a tenor of years for equipment and working capital.
Similarly, the FGN Manufacturing Sector Fund, also valued at N75 billion, aims to support eligible manufacturing companies grappling with soaring production costs. With a focus on alleviating challenges posed by infrastructure deficiencies and other factors impacting the manufacturing sector, beneficiaries could receive up to N1 billion.
Disbursements from this fund will be made at an interest rate of nine percent per annum inclusive, with a five-year tenor for term loans and one year for working capital.
The initiative follows the Federal Government’s commitment to cushion the impact of recent economic reforms on businesses. In response to protests by organized labor calling for government palliatives, President Bola Tinubu pledged in a televised broadcast to provide loans and grants to businesses to help navigate the challenging business climate.
The Bank of Industry has been appointed as the executing agency for the funds, tasked with their day-to-day administration.