FG Commences N200bn MSME and Manufacturing Fund Disbursement Process

The Federal Government of Nigeria, under the leadership of President Bola Tinubu, has officially launched the loan disbursement process for the Micro, Small and Medium Enterprises (MSME) and Manufacturing sectors, with a total fund allocation of N200 billion.

This initiative aims to support economic growth and industrial development by providing financial assistance to eligible businesses.

The Ministry of Industry, Trade, and Investment announced the operational launch of the MSME and Manufacturing segment under the Presidential 200 Billion Naira Intervention Fund.

The fund is divided equally, with N75 billion allocated to support MSMEs and another N75 billion for the manufacturing sector.

The disbursement process for the Presidential Conditional Grant Scheme, aimed at cushioning the effects of the petrol subsidy removal and other economic shocks, has already begun.

Thousands of beneficiaries have confirmed receipt of funds, with the government planning to support 1 million nano businesses across the country.

Eligible enterprises are encouraged to apply for the loan through the ministry’s official application portal at www.fedgrantandloan.gov.ng (http://www.fedgrantandloan.gov.ng).

Applicants seeking more detailed information can visit their local state Bank of Industry branch for assistance.

The eligibility criteria and repayment frequency for MSME loans up to N1 million include:

Eligibility Criteria:

Must be an existing business in operation for at least one year, or a registered start-up.
Provide CAC business registration documents.
Present the company’s bank statement for existing businesses or the chief promoter’s bank statement for start-ups.
Fulfil the required monthly turnover and comply with other requirements as specified by the bank.
Provide a personal guarantee of the promoter.
Adhere to bank verification number (BVN) covenant.
Agree to global standing instruction (GSI) and other securities as required by the bank.

Repayment Frequency:

Monthly equal instalments with no moratorium, spanning a 3-year term.

For manufacturers seeking loans up to N1 billion, the criteria include:

Choose between working capital or asset financing.
Maintain at least a 6-month business/corporate banking relationship.
Provide additional documentation as required by the bank.

Asset financing comes with a 5-year repayment period, and working capital financing includes a 6-month moratorium on principal and interest, followed by a 12-month equal instalment repayment plan.

The FG’s N200 billion MSME and Manufacturing fund is a significant step towards promoting economic growth and industrial development in Nigeria.

By providing financial assistance to eligible businesses, the government aims to create job opportunities, improve the business environment, and foster sustainable economic growth.