The Federal Government of Nigeria through the Ministry of Industry, Trade and Investment has launched the MSME and Manufacturing segment of the highly anticipated Presidential 200 Billion Naira Fund.
In a public announcement, the government expressed its commitment to strengthening the nation’s industrial sector and fostering an environment conducive to business growth.
The fund’s allocation is divided into two parts: 75 Billion Naira for Micro, Small, and Medium Enterprises (MSMEs) and another 75 Billion Naira earmarked for the manufacturing sector.
This initiative follows the successful closure of applications for the Presidential Conditional Grant Scheme, which has already shown remarkable success by supporting 1 million nano businesses across Nigeria.
Through this fund, the government aims to provide much-needed financial assistance to MSMEs and manufacturers, enabling them to expand their operations, acquire modern equipment, and enhance their competitiveness in both domestic and international markets.
Loan Eligibility Criteria:
For MSME Loans up to 1 Million Naira:
A. Eligibility Criteria:
- Must be an existing business operational for at least one year or a registered start-up.
- Submission of Corporate Affairs Commission (CAC) business registration documents.
- Presentation of Company’s Bank Statement for existing businesses or Chief Promoter’s Bank Statement for start-ups.
- Fulfilment of required monthly turnover and compliance with other stipulated bank requirements.
B. Security:
- Provision of Personal Guarantee by the promoter.
- Agreement to Biometric Verification Number (BVN) Covenant.
- Adherence to Global Standing Instruction (GSI) and other prescribed securities by the bank.
C. Repayment Frequency:
- Monthly equal instalments with no moratorium, spanning a 3-year term.
For Manufacturers (For Loans up to 1 Billion Naira):
- Flexibility to choose between Working Capital or Asset Financing.
- Maintenance of at least a 6-month business/corporate banking relationship.
- Submission of additional documentation as specified by the bank.
Repayment Terms:
- Asset Financing: 5-year repayment period.
- Working Capital Financing: 6-month moratorium on principal and interest, followed by a 12-month equal instalment repayment plan.
To apply, please visit our official application portal at www.fedgrantandloan.gov.ng.
For detailed information and assistance, prospective applicants are encouraged to reach out to their local state Bank of Industry branch.
