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The Federal Government of Nigeria is currently giving out N50,000 grants and loans of up to N1m to businesses in Nigeria through its Presidential Conditional Grant and Loan Scheme.
According to the Federal government, the major requirement for anyone to get the loan is to have the National Identification Number (NIN). Persons without NIN will not benefit from the programme. FG also urged applicants who haven’t received their loans to simply log in to the federal government application platform and update their NIN.
According to the federal government, it plans to collaborate with State Governments, Honourable Ministers, NASME (Nigerian Association of Small and Medium Enterprises), Senators, and House of Representative Members in order to disburse money to eligible beneficiaries from different constituents. FG said those to benefit from the program include 70% women and youth, 10% of people with disabilities, and 5% senior citizens, while the remaining 15% is distributed to other demographics.
What is the Presidential Conditional Grant Programme
The presidential conditional grant is N50,000.00 (Fifty Thousand Naira) per beneficiary. The federal government said the money will be given to one million nano businesses in the 774 local government areas.
Who is eligible to apply for the grant?
Traders
Anyone with a single retail marketers, corner shop owners, petty traders, market men and women in open markets are eligble to apply for this grant.
Food Services
Nigerians who sell food and vegetable are also eligible.
ICT
Anyone who operates a business centre is eligible. Also, if you are a battery charger, recharge card vendor, call centre agent etc can apply for this grant.
Transportation
Are you into transportation business, then you are eligble to apply. If you are wheelbarrow pushers, independent dispatch riders etc.
Creatives
Creatives like those makeup artists, fashion designers, drycleaners can apply.
Artisans
If you are into vulcanizing, shoemaking, painting, repairing etc, then you can apply.
Grant Eligibility Criteria
If you are applying for the grant, ensure you have a nanobusiness, as the money will be used to grow your business.
Before applying for the loan, make sure you have proof of residential/business address in the Local Government Area you live.
Also, you will be asked to provide relevant personal and bank account information.
Your Bank Verification, (BVN) and NIN will be used for verification to avoid fraud.
How to apply for the grant?
Apply for the loan through the provided website www.fedgrantandloan.gov.ng while disbursement will be done by your bank if you meet the eligibility criteria.
According to the federal government, disbursement of the N50k grant will begin from 19th April, 2024. Some Nigerians who have already gotten the grant revealed they got text messages after they had registered for the program using their NIN.
The Presidential Palliative Loan Programme
The Presidential Palliative Loan Programme is an initiative of the federal government geared towards transforming the lives of ordinary Nigerians. The initiative is to provide capital to businesses as financial support in a bid to transform and improve the lives of people.
According to the Federal Government below are the businesses that are eligible to apply to the scheme:
Traders
These include single retail marketers, corner shop owners, petty traders, market men and women in open markets
Food Services
These include food, fruit, and vegetable vendors, etc
ICT
These include business centre operators, battery chargers, recharge card vendors, and call centre agents
Transportation
These include wheelbarrow pushers, independent dispatch riders
Creatives
These include makeup artists, fashion designers, drycleaners.
Artisans
These include vulcanizers, shoemakers, painters, repairers.
Loan of up to N1m, Eligibility Criteria
Eligibility Criteria
Existing business must be in operation for one (1) year,
Start-ups must be a registered business
Provide CAC business registration documents.
Company’s Bank Statement(s) for a period of one (1) year (for existing business)/ Chief Promoter’s (Director or Business owner) Bank Statement(s) for a period of one (1) year (for startups).
Have required monthly turnover and other things as may be requested by the bank.
Security
Personal Guarantee of the promoter
Acceptance of BVN Covenant (Global Standing Instruction- GSI), and any other thing that may be required by the bank
Repayment Frequency
Monthly equal installment (no moratorium) over a period of 3 years
Manufacturers up to N1billion (Working Capital or Asset Financing)
Eligibility Criteria
At least 6months business/ corporate banking relationship
Provide CAC business registration documents
12 months bank statement for other bank
Other documentations that may be required by the bank.
Security
As may be required by the bank
Repayment term:
i) Asset Financing
6 Months moratorium on principal and interest, 5 years repayment period for asset financing only
ii) Working Capital Financing
12months equal installment of principal and interest
However, disbursement will be done by your bank if you meet the eligibility criteria.
The loan term is 36 months for MSMEs and Manufacturers (Working capital) is 12 months, while Manufacturers (Asset financing) has a 60-month tenor with a six-month moratorium.
Depending on the bank, it takes 2 weeks for the loan to be released to your account.
What about those interested in both grants and loans?
For all Nigerians interested in both the grant and loan, please you can apply by visiting FG’s website. Make sure you provide all the requirements and meet the criteria specified before submitting your application.
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