President Bola Tinubu has approved the release of over N275 billion for the immediate resuscitation of the manufacturing and the Micro, Small and Medium-sized enterprises (MSME).
In a nationwide broadcast to the nation on Monday, Tinubu said that was part of the Federal Government efforts to cushion the effects of the removal of fuel subsidy on Nigeria and its people.
“To strengthen the manufacturing sector, increase its capacity to expand and create good paying jobs, we are going to spend N75 billion between July 2023 and March 2024.
“Our objective is to fund 75 enterprises with great potential to kick-start sustainable economic growth, accelerate structural transformation and improve productivity.
“Each of the 75 manufacturing enterprises will be able to access N1 Billion credit at 9 per cent per annum with maximum of 60 months repayment for long term loans and 12 months for working capital.’’
On MSME, the president said that N125 billion would be made available to energise the sector as a key driver of growth of the economy.
“Our administration recognises the importance of micro, small and medium-sized enterprises and the informal sector as drivers of growth. We are going to energise this very important sector with N125 billion.
“Out of the sum, we will spend N50 billion on Conditional Grant to 1 million Nano businesses between July 2023 and March 2024.
“Our target is to give N50,000 each to 1,300 Nano business owners in each of the 774 local governments across the country. Ultimately, this programme will further drive financial inclusion by onboarding beneficiaries into the formal banking system,” he said.
Similarly, Tinubu announced another N75 billion for 100,000 MSME start-ups at nine per cent interest rate payable in 36 months.
“In like manner, we will fund 100,000 MSMEs and start-ups with N75 billion. Under this scheme, each enterprise promoter will be able to get between N500,000 to N1million at 9 per centinterest per annum and a repayment period of 36 months.”
The president said that the government was able to save more than one trillion Naira from the petrol subsidy removal which would be used to further develop different socio-economic sectors in the country.
“In a little over two months, we have saved over a trillion Naira that would have been squandered on the unproductive fuel subsidy which only benefitted smugglers and fraudsters.
“That money will now be used more directly and more beneficially for you and your families. For example, we shall fulfill our promise to make education more affordable to all and loans to students who may need them.
“No Nigerian student will have to abandon higher education because of lack of money. Our commitment is to promote the greatest good for the greatest number of our people. On this principle, we shall never falter.
‘’We are also monitoring the effects of the exchange rate and inflation on gasoline prices. If and when necessary, we will intervene.
“I assure you my fellow country men and women that we are exiting the darkness to enter a new and glorious dawn,’’ Tinubu said.