Micro, Small, and Medium-Sized Businesses (MSMEs) can now access money at a single-digit interest rate of 9% annually thanks to the Federal Government’s increase in the loan limit from N1 million to N5 million.
This program is a component of the N200 billion Presidential Intervention Fund for MSMEs, which aims to promote inclusive economic development and business growth.
The declaration was made at a town hall sensitisation on the Federal Government’s Grant and Loan Scheme in Lagos by Olasupo Olusi, managing director and chief executive officer of the Bank of Industry (BoI).
The program aims to solve small business finance issues while generating employment across the country. MSMEs would receive N5 million each for three years without collateral, with an interest rate of 9%.
The Federal Ministry of Finance coordinated the event with the Bank of Industry, the Presidency, the Federal Ministry of Industry, Trade, and Investments, and other relevant parties.
Olusi praised President Bola Tinubu for making the N200 billion Presidential Intervention Fund for Micro, Small, and Medium-Sized Enterprises available, as indicated by Umar Shekarau, executive director, of MSMEs, BoI.
He stated that MSMEs were to get N75 billion from the presidential conditional grant and loan program, which was anticipated to generate thousands of direct and indirect jobs across the country.
According to the BoI chief, the fund, which was made possible by the Bank of Industry countrywide, was already in the bank and prepared to be distributed to recipients at an interest rate of just 9%.
In order to take advantage of loans and grants, he advised business owners to contact the BoI or register online directly, bypassing middlemen.
He claims that more than 800,000 Nigerians have benefited and that all Nigerians, including women, youth, and those with physical disabilities, can be included.
“We disburse the funds and uphold our integrity as BoI,” he stated.
Six states in the federation host town halls at the same time.
According to Temitola Adekunle-Johnson, the President’s senior special assistant on job creation and micro, small, and medium-sized businesses, successful applicants will receive an additional loan of N5 million.
This is in contrast to the N1 million objective that was previously set in order to improve their business operations.
He claimed that President Tinubu provided the money to lessen the impact of the difficulties that businesses face, such as those related to infrastructure and financing availability.
“The loan is nine percent for three years. A single MSME might earn up to N5 million in single digits,” he concluded.
