The Federal Government has begun the disbursement of N75bn loan to manufacturers 14 months after announcing the plan.
Disbursed through the Bank of Industry at a nine per cent annual interest rate, the loan is to help larger companies navigate the current economic crunch and cope with production and operations costs.
The initiative aims to support the manufacturing sector, enhance production capacity, and ultimately drive economic growth.
The Director General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, disclosed the commencement of the loan disbursement during an exclusive chat with Sunday PUNCH on Friday.
In December 2023, the Federal Government unveiled the Presidential Conditional Grant Scheme as part of the Presidential Palliative Programme aimed at supporting businesses to navigate the economic crunch caused by government policies.
The scheme dedicated N75bn to MSMEs and another N75bn to the manufacturing sector.
However, the lengthy and complex government bureaucratic processes significantly hindered the timely disbursement of funds to the recipients who were eagerly anticipating their payments.
The former minister of Industry, Trade and Investment, Doris Aniete, had said over 700,000 manufacturers and Micro, Small and Medium Enterprises expressed intention to become beneficiaries of the loan.
But the MAN DG clarified that 75 companies would get N1bn each under the programme.
He said the loan disbursement specifically granted to members of the association was given after signing a memorandum of understanding with BOI.
He said, “We have signed a memorandum of understanding with the Bank of Industry to begin disbursement of the N75bn loan to manufacturers. Some members have started receiving their funds. The MOU was signed during the NESG period. The disbursement has started too.
“The government is giving N1bn to 75 registered companies with the Manufacturers Association of Nigeria and we are making sure only registered members get the loan.”
He noted that the association would be able to monitor and account for every penny spent by the beneficiaries.
“With this approach, we will be able to monitor what every member used it for. This fund will also be used as part of the economic stabilisation plan of the government.
“The amount, though small compared to the damage already caused by the economic situation to the industry, the funds will be utilised effectively,” he concluded.(Punch)
