Over 700,000 manufacturers and micro, small, and medium-sized enterprises (MSMEs) have submitted applications for the N150 billion loan offered by the Federal Government.


Approximately 700,000 manufacturers and micro, small, and medium enterprises have indicated their interest in receiving the Federal Government’s N150 billion loan, which aims to assist businesses in Nigeria in navigating the current economic challenges.

The Minister of Industry, Trade, and Investment, Doris Aniete, disclosed this information during a recent interview with our correspondent on Friday. She emphasized that the ministry is diligently working to ensure the timely disbursement of the funds to qualified businesses.

As of our understanding, a total of 630,797 citizens have been recipients of the Presidential Conditional Grant Scheme.

In December 2023, the Federal Government introduced the Presidential Conditional Grant Scheme as a component of the Presidential Palliatives Program. This program was designed to provide support to businesses in navigating the economic challenges resulting from government policies.

The fund allocates 75 billion naira to micro, small, and medium-sized enterprises (MSMEs) and an additional 75 billion naira to the manufacturing sector.

The minister, represented by her Special Adviser for Strategic Communications, Terfa Gyado, indicated that the disbursement will occur in phases, with the initial disbursement commencing soon.

“Disbursement is yet to start but they are finalising the first batch. To date about 700,000 applicants have applied,” the minister’s aide stated

He emphasized that the government is fully cognizant of the prevailing business environment and has established the fund to assist Nigerian enterprises in navigating the challenging economic landscape.

Two months prior, Aniete announced that the distribution of N150 billion in loans to micro, small, and medium enterprises, as well as manufacturers, would begin by the end of July.

To qualify for MSME loans of up to N1 million, applicants must possess an operational business that has been in existence for a minimum of one year or be a registered start-up.

They are required to submit CAC business registration documents, provide the bank statement of the existing business or the chief promoter’s bank statement for start-ups, meet the stipulated monthly turnover, and comply with additional criteria set forth by the bank.

Regarding security, applicants must furnish a personal guarantee from the promoter, consent to the BVN covenant, and adhere to global standing instructions and other security measures mandated by the bank.

The repayment structure consists of equal monthly installments without a moratorium, extending over a three-year period.

Manufacturers seeking loans of up to N1 billion are required to select either working capital or asset financing. They must also have maintained a business or corporate banking relationship for a minimum of six months and submit any additional documentation requested by the bank.

According to the minister's statement, asset financing is structured with a repayment period of five years, while working capital financing offers a six-month moratorium on both principal and interest, after which a repayment plan consisting of equal installments over 12 months will commence.