Politics

Federal Government Starts N200 Billion Disbursement to Large Firms and MSMEs

Published by Tope Fakinlede on August 20th, 2024.

Federal Government Starts N200 Billion Disbursement to Large Firms and MSMEs

The Federal Government has initiated a significant economic boost with the rollout of a N200 billion fund aimed at revitalizing the economy, announced Doris Uzoka-Anite, Minister of Industry, Trade, and Investment.

Starting next month, seventy-five major companies will receive loans of up to N1 billion each at single-digit interest rates, while N125 billion will be allocated to Micro, Small, and Medium Enterprises (MSMEs). This support follows the verification of over 700,000 applications.

During a visit to Cross River State Governor Bassey Otu and meetings with grant recipients and loan applicants, Dr. Uzoka-Anite explained that 660,320 nano beneficiaries, accounting for over 60% of the targeted one million, have already received their disbursements across all 774 local governments.

She emphasized that the initiative goes beyond financial aid, aiming to restore hope, rebuild lives, and honor the government’s social contract with the citizens.

The Presidential Conditional Loans and Grant Scheme includes a N200 billion allocation, with N125 billion designated for MSMEs and N75 billion for manufacturers. Companies can access loans up to N200 million from the N75 billion allocation. Nano beneficiaries have each received N50,000, and the remaining applicants are still being verified.

“The impact of this initiative is already evident, and we are dedicated to ensuring its benefits reach every region of the country,” Dr. Uzoka-Anite stated. She also highlighted the government’s commitment to transparency and accountability and encouraged community leaders and civil society groups to oversee the implementation of these measures.

Governor Otu praised the initiative for its positive effects in Cross River, noting that many small businesses have thrived and individuals have improved their economic stability. “This program is genuinely transforming lives in our state,” he remarked.

Announced last year by President Bola Ahmed Tinubu, the program is designed to address economic challenges and high living costs while helping large firms increase production and create jobs.