FG Begins N75bn Single-Digit Interest Rate Loan to Boost Growth of 75,000 MSMEs
- The Nigerian government has announced an N75bn single-digit interest loan to 75,000 small business owners nationwide
- The massive loan scheme is an effort to support small businesses and boost job creation alongside the Conditional Cash Transfer initiative
- The loan scheme is a collaborative effort among the Federal Government, Bank of Industry (BOI) and state governments
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Over 75,000 Micro, Small and Medium Enterprises (MSMEs) across the country are set to benefit from single-digit interest loans totalling N75 billion.
Expected to commence in 2025, the massive loan initiative for Micro, Small and Medium Enterprises (MSMEs) across Nigeria is part of a more significant effort to support small businesses, complementing the existing Conditional Cash Transfer initiative.
Source: Facebook
Beneficiaries to get N1m each
The loan scheme is a collaborative effort among the Federal Government, the Bank of Industry (BOI), and state governments to empower MSMEs, particularly women—and youth-owned businesses.
Each beneficiary will receive up to N1 million with a single-digit interest rate of 9% to stimulate job creation and business growth.
This initiative is a critical component of President Bola Ahmed Tinubu's administration's commitment to transforming the MSME landscape in Nigeria. The government hopes to drive economic growth, innovation, and job creation by providing affordable financing options.
With MSMEs contributing over 45% to the country's Gross Domestic Product (GDP), accounting for nearly 90% of jobs, the scheme is expected to significantly impact Nigeria's economy.
FG begins sensitisation in critical states
Ahead of the disbursement, the Federal Government has commenced sensitisation across the country's six geopolitical zones.
In each of these areas, prospective beneficiaries were addressed by officials of the Bank of Industry, Corporate Affairs Commission (CAC), Federal Inland Revenue Service (FIRS), Ministry of Finance, Ministry of Industry, Trade and Investment, and Access Bank, a financial partner, among others.
FCT
Addressing participants at a town hall in the Federal Capital Territory, Minister of Information and National Orientation Alhaji Mohammed Idris explained that the scheme will diversify the Nigerian economy, create jobs, promote value-addition, revitalise communities, and boost exports.
He said that the development is another concrete manifestation of Tinubu's unwavering determination to fulfil the Renewed Hope Agenda, which remains the centre of his governing vision for Nigeria.
Enugu
In Coal City State, the branch head of BOI, Mrs Anuli Akabogu, said that 17,000 people would benefit from the Presidential Conditional Grant Scheme (PCGS).
The Enugu branch head explained that the N75bn for micro, small, and medium enterprises (MSMEs) was another federal government intervention programme designed to reduce the cost of production for MSMEs.
Kaduna
In Kaduna State, the Governor, Uba Sani, assured that President Bola Ahmed Tinubu is determined to wipe out poverty in the country.
Represented by his Special Adviser on Economic Matters, Mr Ibrahim Muhammad, the governor said the fund, which includes the Presidential Conditional Grant Scheme and loan options for MSMEs, is designed to boost Nigeria’s economy by empowering local entrepreneurs.
Akwa Ibom
Participants were tasked to key into the Presidential Grants and Loans Scheme intervention programmes at the sensitisation of Micro, Small, and Medium enterprises (MSMEs) owners in Akwa Ibom.
In his remarks, Commissioner for Trade & Investment, Mr John James, urged the prospective beneficiaries of the loan scheme to make judicious use of the facility to improve their businesses.
He stressed that applicants must present a guarantor not less than Grade Level 10 at the Federal Government civil service, BVN/NIN, four passport photographs, valid means of identification and that of the guarantor.
Ogun
In the Gateway State, the head/manager of BoI, Mr Michael Agidani, said the Bank had disbursed N1 billion to 20,000 small business owners in Ogun.
The manager also sensitised participants to easy access to the N75 billion Presidential Intervention Loan, intended to support eligible manufacturing companies and big business owners.
Bauchi
Speaking during the sensitisation of potential beneficiaries in the North East state, Mr Isa Nadada, the BoI Manager in the state, said the intervention aims to revive the MSMEs in all the 774 local governments across the country.
According to him, the federal government's target is to have 75,000 MSMEs as beneficiaries, which will create job impacts.
FG, BOI open application portal for Nigerians to get loans
Legit.ng earlier reported that the Bank of Industry (BoI) had launched an application portal for Nigerians to access the Federal Government’s N75 billion Micro, Small, and Medium Enterprises (MSMEs) Intervention Fund.
BoI representative Amina Habu Mohammed announced the start of the application process during a press conference on a Memorandum of Understanding (MoU) signed between the Nigerian Association of Small-Scale Industrialists (NASSI) and the Bank of Industry.
According to Amina, the fund plans to give N1 million each at a 9% interest rate for three years without collateral.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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