In a joint initiative between the Federal Government and the Bank of Industry (BOI), plans are underway to disburse N75 billion to Micro, Small, and Medium Enterprises (MSMEs) across Nigeria starting in January 2024. The announcement, made by Temitola Adekunle-Johnson, the Senior Special Assistant to the President on MSMEs and Job Creation, highlighted the government’s commitment to supporting the transformation of the MSMEs sector.
The loans, targeted primarily at women and youths, will come with a favourable single-digit interest rate of 9%. Adekunle-Johnson emphasized that existing platforms would be leveraged to facilitate the loan distribution to small businesses.
This move aligns with President Bola Tinubu’s promise to bolster the MSME space in the country. Adekunle-Johnson mentioned that the collaboration between the Federal Government and the bank aims to provide significant support to MSMEs through both grants and loans.
The statement highlighted the recent increase in Access Bank’s loan scheme for MSMEs from N30 billion to N50 billion, reflecting the commitment to expanding the reach and impact of the bank’s loan program.
In December, the Minister of Industry, Trade, and Investment, Dr. Doris Uzoka-Anite, hinted at the commencement of the N75 billion Presidential Palliative Loan Programme for MSMEs, along with an additional N75 billion specifically allocated for manufacturers. The initiative also includes the long-awaited Presidential Conditional Grant Programme, set to disburse a grant of N50,000 to nano businesses across all 774 local government areas.
The loans for MSMEs and manufacturers will be administered at a favourable single-digit interest rate of 9% per annum, marking a significant effort to boost the growth and sustainability of small businesses in Nigeria.
