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Nigerian Government to Begin Disbursement of N150 Billion Palliatives to Manufacturers and MSMEs

 

Nigerian Government to Begin Disbursement of N150 Billion Palliatives to Manufacturers and MSMEs


The Nigerian government has announced plans to soon begin the disbursement of N150 billion in palliatives under the Presidential Palliative Program. This initiative is targeted at providing financial support to manufacturers, as well as micro, small, and medium enterprises (MSMEs) across the country.


Announcement by the Minister of Industry, Trade, and Investment

Doris Aniete, the Minister of Industry, Trade, and Investment, made the announcement over the weekend through a statement issued by her spokesperson, Terfa Gyado. According to the minister, the government is in the final stages of preparing the first batch of disbursements.

“So far, over 700,000 applications have been submitted for this scheme. While disbursement has not yet started, we are finalizing the first batch of beneficiaries,” Aniete stated.


Details of the Palliative Scheme

The N150 billion Presidential Palliative Program is divided equally between MSMEs and the manufacturing sector, with N75 billion allocated to each. The initiative was first introduced in December 2023 as part of the Presidential Conditional Grant Scheme, designed to mitigate the economic challenges facing businesses in Nigeria.

For manufacturers seeking loans of up to N1 billion, the program offers the option to choose between working capital and asset financing. To qualify, applicants must have maintained at least a six-month business or corporate banking relationship and submit additional documentation as required by the participating banks.


Background and Expectations

The Presidential Palliative Program was created in response to the growing economic hardship in Nigeria, aiming to provide much-needed financial relief to key sectors of the economy. The scheme is part of a broader effort by the government to stimulate economic growth and ensure the sustainability of businesses during challenging times.

Earlier in the year, the Minister announced that disbursements were expected to begin in July 2024. However, with over 700,000 applications received so far, the government is moving swiftly to finalize the selection process and initiate the distribution of funds.


Key Points:

  • Upcoming Disbursement: The Nigerian government will soon begin distributing N150 billion in palliatives to manufacturers and MSMEs.
  • Application Status: Over 700,000 applications have been received, with the first batch of disbursements being finalized.
  • Loan Options: Manufacturers can apply for loans up to N1 billion, choosing between working capital and asset financing.
  • Program Background: The scheme was launched in December 2023 as part of efforts to alleviate economic hardship in Nigeria.
  • Initial Disbursement Plan: Originally scheduled for July 2024, the disbursement is now in its final preparation stages.

Stay informed with Naija Newshawk for the latest updates on government initiatives and economic programs in Nigeria.

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