Banks to screen applicants for N275b palliatives loan

The Federal Government has concluded plans to disburse N275 billion palliatives support funds to Nigerians through the conditional grant and presidential palliative loan schemes.

Banks are expected to screen manufacturers and micro, small and medium enterprises (MSMEs) and nano companies seeking the facilities.

Minister for Industry, Trade and Investment, Dr Doris Uzoka-Anite, said the government proposed N75 billion single-digit interest loans for 75 major manufacturers at an average rate of N1 billion per company at 9.0 per cent interest rate.

Also, N125 billion was set aside for MSMEs. This includes N50 billion conditional grants to one million nano businesses across thee 774 local government areas.

A total of 1,300 nano businesses will receive N50,000 each across  the 774 local government areas.

Besides, N75 billion will be allocated to 100,000 MSMEs with each company able to access between N500,000 and N1 million at the single interest rate of 9.0 per cent.

Each manufacturer can access up to N1 billion, depending on the capacity of the business, she added.

For the manufacturers, they will have to pass the banks’ risk assessment on their accounts to confirm willingness and ability to repay the loans, turnover to determine business capacity and amount to be accessed and other conditions precedent to drawdown before getting the loan.

“The Federal Government through the Ministry and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), will collaborate with State and Local Governments, Federal Legislators, Federal Ministers, Banks and other Stakeholders.

“The eligible nano business beneficiaries should be willing to provide proof of residential/business address in their local government area, and provide relevant personal and bank account information, including Bank Verification Number, BVN, for verification of identity”.

Also, for the Presidential Palliative Loan Programme, the minister added: “The Federal Government will likewise disburse N75 billion to Micro, Small and Medium-sized Enterprises, MSMEs, across various sectors and N75 billion specifically to Manufacturers.

“The loan shall be administered to the beneficiaries at a single-digit interest rate of 9 percent per annum.

“While MSMEs can access loan facilities up to N1 million with a repayment period of three years, manufacturers can access up to N1 billion to access financing for working capital with a repayment period of 1 year for working capital or five years for the purchase of machinery and equipment.

“MSMEs and manufacturers can apply for the loans by submitting their application on the portal provided for the programme.

“The facility would be accessed through their banks, and applicants would be required to meet the risk assessment criteria of their respective banks.

“As part of its commitment to promote economic development, entrepreneurship and financial empowerment, the Federal Government believes these initiatives will encourage entrepreneurship and job creation”.

Uzoka-Anite added that eligible beneficiaries can get more information and apply at the website dedicated to the programme.

For the MSMEs, SMEDAN is also central to the loan approval because the beneficiaries within the segment fall within the group, and its recommendation is critical for the approval and security of the loans.

The stakeholders, who are closer to the beneficiaries, are expected to shortlist applicants to strengthen chances of approval and eventual disbursement of the funds by the banks.