Empowering Businesses: BOI Announces N200 Billion Support for Manufacturers and SMEs

In a significant move to bolster the nation's economy, the Bank of Industry (BOI) has unveiled plans to disburse a substantial sum of N200 billion to support manufacturers and businesses nationwide. This initiative comes as a beacon of hope for entrepreneurs navigating the challenging economic landscape.

The funding encompasses three key categories, namely the Presidential Conditional Grant Scheme, the FGN MSME Intervention Fund, and the FGN Manufacturing Sector Fund. Each segment targets specific sectors, aiming to provide tailored assistance where it's most needed.

The Presidential Conditional Grant Scheme, with a budget of N50 billion, is designed to offer vital support to eligible nano business owners. These grants, which do not require repayment, are set to benefit a minimum of 1,000 recipients, with a particular focus on empowering women and youths across all 774 local government areas and the six council areas in the Federal Capital Territory.

Eligible nano businesses span a diverse range, including traders, food vendors, ICT enterprises, transporters, artisans, and creatives. To qualify, applicants must demonstrate ownership of a nano business and a commitment to business expansion by registering a business name. Additionally, they are encouraged to employ at least one additional staff member as their business grows.

The FGN MSME Intervention Fund, totaling N75 billion, targets Micro, Small, and Medium Enterprises (MSMEs) in Nigeria. This fund aims to alleviate the financial burden on eligible enterprises, providing much-needed support to mitigate the challenges posed by infrastructural deficiencies and other ancillary factors affecting MSMEs.

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Each beneficiary stands to receive a maximum of N1 million, with the fund disbursed at a competitive interest rate of nine percent per annum. This support extends over a tenure of years, covering both equipment and working capital needs.

Similarly, the FGN Manufacturing Sector Fund, also valued at N75 billion, is earmarked to bolster eligible manufacturing companies. With the aim of addressing the escalating costs of production, marketing, and distribution, this fund serves as a lifeline for the manufacturing sector, a critical driver of economic growth.

Beneficiaries of this fund can access up to N1 billion at an attractive interest rate of nine percent per annum. The tenure for term loans spans five years, while working capital loans are offered over a one-year period.

This timely disbursement of funds underscores the government's commitment to supporting businesses in the wake of recent economic reforms. Responding to calls for assistance from organized labor, President Bola Tinubu assured the nation of loans and grants to aid businesses in navigating the current economic climate.

The BOI, appointed as the executing agency for these funds, assumes responsibility for their day-to-day administration. For further details and application procedures, interested parties are encouraged to visit the BOI website at boi.ng

With this injection of financial support, BOI is poised to ignite a wave of entrepreneurship and innovation, driving economic resilience and prosperity across Nigeria.