FG Begins Disbursement Of N200bn Palliative Loan

The Ministry of Industry, Trade, and Investment has initiated the allocation of the Presidential Conditional Grant Scheme loan to approved candidates after a thorough selection process.

The government, in collaboration with the Bank of Industry, had announced its plan to distribute three different funding categories amounting to N200bn to assist manufacturers and businesses nationwide.

In an update shared on the trade minister’s official X (formerly Twitter) account on Tuesday, Doris Aniete revealed that a certain number of recipients have already received their grants. She also mentioned that a considerable disbursement will take place by Friday, April 19, benefiting a large number of verified applicants.

“We are pleased to inform you that the disbursement process for the Presidential Conditional Grant Programme has officially commenced. Some beneficiaries have already received their grants, marking the beginning of our phased disbursement strategy.”

“By Friday, 19th April 2024, a significant disbursement will be made to a substantial number of verified applicants. It is essential to understand that disbursements are ongoing, and not all applicants will receive their grants on this initial date. However, rest assured that all verified applicants will eventually receive their grants in subsequent phases.”

The grant for manufacturers and small businesses, which was announced by President Bola Tinubu over eight months ago, has finally arrived. Two weeks ago, applicants were instructed to submit their National Identification Numbers as a prerequisite for obtaining the grant.

This grant has been designated to alleviate the impact of recent economic reforms on businesses in the country. During his address, the president expressed his unwavering commitment to fortifying the manufacturing sector, enhancing its growth potential, and generating well-paying employment opportunities.

“We are going to spend N75bn between July 2023 and March 2024. Our objective is to fund 75 enterprises with great potential to kick-start sustainable economic growth, accelerate structural transformation, and improve productivity.

‘’Each of the 75 manufacturing enterprises will be able to access N1bn credit at 9 per cent per annum with a maximum of 60 months repayment for long-term loans and 12 months for working capital,” Tinubu said.

The initiative, plagued by numerous delays and a convoluted registration procedure, has faced considerable backlash from potential recipients.

The President of the Association of Small Business Owners, Femi Egbesola, expressed his dismay over the sluggish data collection efforts of the overseeing organizations, claiming that legitimate enterprises were intentionally being deterred from obtaining the loans.

Recall that Ayo Ayalowo, a development economist, has emphasized the need for President Bola Tinubu’s administration and the Nigerian Electricity Regulatory Commission to abandon bands A, B, and C due to the insufficient power supply experienced by Nigerians.

This statement was made during an interview on Channels Television on Tuesday. Ayalowo highlighted that the escalating prices of energy sources, such as electricity and diesel, significantly contribute to the high inflation rates in Nigeria.

He suggested that the government should reconsider the recently announced 240% increase in electricity tariffs for Band A customers who receive 20 hours of power supply.

Ayalowo emphasized that despite the tariff hike, Nigerians are still not receiving adequate power supply.