BOI Launches N200 Billion Support Initiative for Businesses Nationwide
In a strategic move to bolster the nation's economy, the Federal Government of Nigeria, through the Federal Ministry of Industry, Trade, and Investment (FMITI), has unveiled three funding programs totaling N200 billion to support businesses across Nigeria.
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In a strategic move to bolster the nation's economy, the Federal Government of Nigeria, through the Federal Ministry of Industry, Trade, and Investment (FMITI), has unveiled three funding programs totaling N200 billion to support businesses across Nigeria. These initiatives, namely the Presidential Conditional Grant Scheme (PCGS), the FGN MSME Intervention Fund, and the FGN Manufacturing Sector Fund, aim to invigorate entrepreneurship and stimulate economic growth nationwide. The Bank of Industry (BOI) has been entrusted with the execution of these funds, overseeing their day-to-day administration.
Presidential Conditional Grant Scheme (PCGS)
The PCGS, valued at N50 billion, is tailored to support eligible Nano Business owners. This grant scheme targets a minimum of 1,000 beneficiaries per Local Government Area (LGA) in the 774 LGAs nationwide, including the six Council Areas in the Federal Capital Territory (FCT). Nano businesses such as traders, food vendors, ICT enterprises, transporters, artisans, and creatives are among the primary beneficiaries. Unlike loans, this grant component does not require repayment. To qualify, beneficiaries must meet specific criteria, including business registration, workforce expansion commitments, and providing necessary documentation for identity verification.
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FGN MSME Intervention Fund
With an allocation of N75 billion, the FGN MSME Intervention Fund aims to alleviate the financial burdens faced by Micro, Small, and Medium Enterprises (MSMEs) in Nigeria. This fund seeks to mitigate the challenges arising from infrastructure deficiencies and other ancillary factors affecting MSMEs. Each beneficiary stands to receive a maximum of N1 million, with the fund disbursed at an inclusive interest rate of 9% per annum. The tenure for equipment and working capital support extends over three years, providing a vital cushion for businesses striving to thrive in a competitive market.
FGN Manufacturing Sector Fund
Another critical initiative is the N75 billion FGN Manufacturing Sector Fund, designed to support eligible manufacturing companies. This fund aims to address the rising costs of production, marketing, and distribution, thereby enhancing the competitiveness of the manufacturing sector. Beneficiaries can access up to N1 billion, disbursed at a competitive interest rate of 9% per annum. The tenure for term loans spans five years, while working capital loans are offered over a one-year period.
BOI's Commitment to Economic Development
Dr. Olasupo Olusi, the MD/CEO of the Bank of Industry, reaffirmed BOI's unwavering commitment to the development of MSMEs, recognizing them as the backbone of the economy. This initiative aligns with President Bola Ahmed Tinubu's Renewed Hope Agenda, aimed at fostering economic prosperity and empowerment.
For more information on these funding opportunities, visit the BOI website and take a step towards realizing your business aspirations.
