The federal government has officially kicked off the disbursement of the N50,000 Presidential Conditional Grant Scheme, popularly known as the Trade Grants Scheme, to nano businesses across Nigeria.
Nano businesses, defined by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) as enterprises with one or two workers and an annual turnover of less than N3 million, are the primary beneficiaries of this initiative.
Minister of Industry, Trade, and Investment, Doris Uzoka-Anite, announced this development yesterday in Abuja.
Uzoka-Anite revealed that the disbursement process has already commenced, with several beneficiaries having received their grants. The phased disbursement strategy ensures that the distribution of funds is gradual and systematic.
Commenting on this development, chief executive officer of Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf said that the decision to make available this concessionary financing for manufacturers is a very good one because cost of funds at this time is extremely high as a result of the monetary policy tightening.
He also said that “right now interest rates are as high as 30 percent. So, at this point, the fund is being available at a much lower interest rate, possibly a single digit, and with a longer tenure. If it is like that, then that will be very beneficial to the manufacturers. We also need to know the conditions for giving out the loan.”
According to Yusuf, we have had instances in the past where the kind of collateral requirements are so difficult to meet. As such, many of the intended beneficiaries are not able to access the loan. Because of the very stringent collateral requirements.
“So, the government should make the facility more accessible to the entrepreneurs or the manufacturers.
A significant disbursement is scheduled for Friday, April 19, 2024, when a substantial number of validated applicants will receive their grants. However, the minister emphasised that not all applicants will receive their grants on this initial date, as the disbursement process is ongoing.
Meanwhile, the minister reassured all verified applicants that they would eventually receive their grants in subsequent phases and urged patience as the applications were diligently processed.
The Trade Grants Scheme announced as part of the Presidential Palliatives Programme in December 2023, aims to empower nano businesses across various sectors such as trading, food services, ICT, transportation, creative arts, and artisans.
The scheme targets specific demographics, including 70 percent women and youths, 10 percent people with disabilities, 5 percent senior citizens, and the remaining 15 percent distributed to other groups.
Each beneficiary will receive a non-repayable grant of N50,000 directly into their accounts. The programme is set to impact one million small businesses across the 774 local government areas and six council areas in the Federal Capital Territory (FCT)
To reach one million beneficiaries in every local government area and the FCT, Uzoka-Anite highlighted the potential of the programme to significantly uplift communities nationwide.
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