The federal government has officially kicked off the disbursement of the N50,000 Presidential Conditional Grant Scheme, popularly known as the Trade Grants Scheme, to nano businesses across Nigeria.
Nano businesses, defined by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) as enterprises with one or two workers and an annual turnover of less than N3 million, are the primary beneficiaries of this initiative.
Minister of Industry, Trade, and Investment, Doris Uzoka-Anite, announced this development yesterday in Abuja.
Uzoka-Anite revealed that the disbursement process has already commenced, with several beneficiaries having received their grants. The phased disbursement strategy ensures that the distribution of funds is gradual and systematic.
Commenting on this development, chief executive officer of Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf said that the decision to make available this concessionary financing for manufacturers is a very good one because cost of funds at this time is extremely high as a result of the monetary policy tightening.
He also said that “right now interest rates are as high as 30 percent. So, at this point, the fund is being available at a much lower interest rate, possibly a single digit, and with a longer tenure. If it is like that, then that will be very beneficial to the manufacturers. We also need to know the conditions for giving out the loan.”
According to Yusuf, we have had instances in the past where the kind of collateral requirements are so difficult to meet. As such, many of the intended beneficiaries are not able to access the loan. Because of the very stringent collateral requirements.
