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President Tinubu Approves N125 Billion for Small Businesses and Manufacturing
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Home » Latest » President Tinubu Approves N125 Billion for Small Businesses and Manufacturing
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President Tinubu Approves N125 Billion for Small Businesses and Manufacturing
9 hours agoby Ihesiulo Grace3 min read
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President Bola Ahmed Tinubu announced that he has approved N125 billion in stimulus packages for small businesses and manufacturing enterprises.
POLITICS NIGERIA reports that Tinubu personally disclosed this in a nationwide broadcast on the state of the economy
The President said that the government recognizes the importance of micro, small and medium-sized enterprises (MSMEs) and the informal sector as drivers of growth.
He said that the government is committed to energising this sector by providing financial assistance and other support.
Under the stimulus package, N50 billion will be spent on a conditional grant to 1 million nano businesses. This means that 1,300 nano business owners in each of the 774 local governments across the country will receive N50,000 each.
The government will also fund 100,000 MSMEs and start-ups with N75 billion. Each enterprise promoter will be able to get between N500,000 to N1million at 9% interest per annum and a repayment period of 36 months.
In addition, the government will spend N75 billion to strengthen the manufacturing sector. The aim is to fund 75 enterprises with great potential to kick-start a sustainable economic growth, accelerate structural transformation and improve productivity. Each of the 75 manufacturing enterprises will be able to access N1 Billion credit at 9% per annum with maximum of 60 months repayment for long term loans and 12 months for working capital.
He said, “Our administration recognises the importance of micro, small and medium-sized enterprises and the informal sector as drivers of growth. We are going to energise this very important sector with N125 billion.”
“Out of the sum, we will spend N50 billion on Conditional Grant to 1 million nano businesses between now and March 2024. Our target is to give N50,000 each to 1,300 nano business owners in each of the 774 local governments across the country.
“Ultimately, this programme will further drive financial inclusion by onboarding beneficiaries into the formal banking system. In like manner, we will fund 100,000 MSMEs and start-ups with N75 billion. Under this scheme, each enterprise promoter will be able to get between N500,000 to N1million at 9% interest per annum and a repayment period of 36 months.
“To further ensure that prices of food items remain affordable, we have had a multi-stakeholder engagement with various farmers’ associations and operators within the agricultural value chain.”
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“To strengthen the manufacturing sector, increase its capacity to expand and create good paying jobs, we are going to spend N75 billion between July 2023 and March 2024. Our objective is to fund 75 enterprises with great potential to kick-start a sustainable economic growth, accelerate structural transformation and improve productivity. Each of the 75 manufacturing enterprises will be able to access N1 Billion credit at 9% per annum with maximum of 60 months repayment for long term loans and 12 months for working capital.”
The President appealed to Nigerians to bear the pains associated with the removal of fuel subsidy, assuring them that things would pick up. He said that the government is committed to ensuring that the economy grows and that jobs are created.
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Article publié le mardi 1 août 2023
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