The Federal Government, through the Federal Ministry of Industry, Trade, and Investment (FMITI), has appointed Bank of Industry (Bol) to disburse three funds totaling N200 billion to support businesses across Nigeria.
The initiative will be deployed under the Presidential Conditional Grant Scheme (PCGS); the FGN MSME Intervention Fund; and the FGN Manufacturing Sector Fund.
Specifically, 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 6 (six) Council Areas in the FCT.
The target nano businesses include, traders, food vendors, ICT businesses, transporters, artisans, creatives, among others. 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.
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 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 Ahmed Tinubu’s Renewed Hope Agenda.
