The Federal Government’s N150bn loan initiative has attracted approximately 700,000 manufacturers and micro, small, and medium enterprises (MSMEs) seeking to mitigate the current economic challenges. Minister of Industry, Trade and Investment, Doris Aniete, revealed this in a recent interview, emphasizing the ministry’s efforts to ensure prompt disbursement of funds to eligible businesses.
This development follows the Presidential Conditional Grant Scheme, launched in December 2023, which has already benefited 630,797 citizens. The minister’s aide, Terfa Gyado, confirmed that disbursement of the N150bn loans would be done in batches, with the first set to commence soon.
To be eligible for MSME loans up to N1m, applicants must meet specific requirements, including:
– Existing business operation for at least one year or registered start-up
– CAC business registration documents
– Bank statement for existing businesses or chief promoter’s bank statement for start-ups
– Fulfilling required monthly turnover and other bank-specified requirements
Security requirements include:
– Personal guarantee of the promoter
– BVN covenant agreement
– Global standing instruction and other securities as required by the bank
Repayment terms entail:
– Monthly equal installments with no moratorium for a three-year term
For manufacturers seeking loans up to N1bn, additional requirements apply, including:
– Choosing between working capital or asset financing
– Maintaining at least a six-month business/corporate banking relationship
– Providing additional documentation as required by the bank
Asset financing comes with a five-year repayment period, while working capital financing includes a six-month moratorium on principal and interest, followed by a 12-month equal installment repayment plan.
