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The Bank of Industry (BoI) is set to execute the three funds totaling N200 billion created by the federal government, through the Federal Ministry of Industry, Trade, and Investment (FMITI), to support businesses across Nigeria.
The Funds are: The Presidential Conditional Grant Scheme (PCGS); The FGN MSME Intervention Fund; and the FGN Manufacturing Sector Fund. The Bank of Industry (BoI) has been appointed as the executing agency of the funds, vested with the responsibility for its day-to-day administration.
The Presidential Conditional Grant Scheme (PCGS) is a N50 billion grant scheme to support eligible Nano Business owners. The Grant will be disbursed to a minimum of 1,000 beneficiaries (especially Women and Youths) per Local Government Area (LGA) in the 774 LGAs across the Nation and the six Council Areas in the FCT. The target nano businesses include; Traders, Food Vendors, ICT businesses, Transporters, Artisans, Creatives, among others.
In a statement by BoI, it said: “this is the grant component of the initiative, as beneficiaries are not required to pay back. To be eligible, beneficiaries must own a nano business and 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/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 beneficiary must meet the application submission deadline for the scheme.”
It added that “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 million, and the fund would be disbursed at an interest rate of nine per cent all-inclusive per annum, with a tenor of three years for equipment and working capital.”
It said: “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 nine per cent all-inclusive per annum, with a tenor of five years for term loans, and one year for working capital.” The MD/CEO, Bank of Industry, Dr. Olasupo Olusi, reiterated BoI’s commitment to the development of MSMEs as the bedrock of the economy, which is in line with President Bola Tinubu’s Renewed Hope Agenda.
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