The Federal Government, through the Federal Ministry of Industry, Trade, and Investment (FMITI), has established three funds totaling N200 billion to support businesses across Nigeria.
The target nanobusinesses include traders, food vendors, ICT businesses, transporters, artisans, and creatives, among others. This is the grant component of the initiative, as beneficiaries are not required to pay it back.
To be eligible, beneficiaries must own a nanobusiness, be willing to register a business name as their business grows and be willing to engage at least one additional staff member if the business turnover increases. They must also be willing to provide proof of residential or business address in their Local Government Area, provide relevant personal and bank account information, including but not limited to Bank Verification Number (BVN) and National Identification Number (NIN) for verification of identity.
The FGN MSME Intervention Fund is a N75 billion fund for Micro, Small and Medium Enterprises (MSMEs) in Nigeria. The fund would be used to support eligible micro, small and medium enterprises and serve as a cushion against the high cost of production, marketing and distribution of products arising mainly from infrastructure deficiencies and other ancillary factors involving MSMEs in Nigeria. Each beneficiary would receive a maximum of N1,000,000. The fund would be disbursed at an interest rate of 9 per cent all-inclusive per annum, with a tenor of 3 years for equipment and working capital.
The FGN Manufacturing Sector Fund is a N75 billion fund that would be used to support eligible manufacturing companies and help cushion against the high and rising costs of production, marketing, and distribution of products arising from infrastructural deficiencies and other ancillary factors affecting the manufacturing sector in Nigeria. Beneficiaries would receive up to N1 billion, disbursed at an interest rate of 9% all-inclusive per annum, with a tenor of 5 years for term loans and one year for working capital.
Dr. Olasupo Olusi, MD/CEO, Bank of Industry, reiterated BOI’s commitment to the development of MSMEs as the bedrock of the economy, which is in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda.