FG to support 1,300 MSMEs with N50,000 each for eight months
In a recent nationwide broadcast, President Bola Tinubu unveiled plans to bolster the Nigerian economy through substantial investment in micro, small, and medium-sized enterprises (MSMEs). The president announced that the federal government aims to inject N125 billion into this crucial sector, which forms the backbone of the nation’s economy.
Empowering Nano Businesses
Significantly, President Tinubu disclosed that N50 billion of the total sum will be allocated as conditional grants for nano businesses, targeting one million entities between now and March 2024. The government plans to distribute N50,000 to each of 1,300 nano business owners in each of the country’s 774 local government areas. Through this initiative, the administration seeks to enhance the financial standing of these businesses, acknowledging the role they play in driving economic growth.
Integrating Beneficiaries into the Formal Banking System
In addition to providing financial support, the program aims to advance financial inclusion by integrating the beneficiaries into the formal banking system. This step is expected to provide these businesses with more financial security and allow them to contribute even more to the nation’s economy.
Supporting MSMEs and Start-ups
President Tinubu also revealed another initiative designed to fund 100,000 MSMEs and start-ups with a hefty sum of N75 billion. Under this scheme, each enterprise promoter will have access to between N500,000 to N1 million at a 9 percent interest rate per year, with a repayment period of 36 months. This move signifies a significant effort to stimulate economic growth and alleviate some of the financial pressures on small and medium-sized businesses.
A Strategic Response to Economic Strain
This announcement comes during a time of notable economic strain in the country, which has been a significant concern since President Tinubu assumed office on May 29. The initiatives are seen as a strategic response to these challenges, aimed at fostering economic recovery and growth by fortifying the MSME sector.