Manufacturers, small and medium scale enterprises will soon receive ₦150 billion palliative from the Federal government of Nigeria.
The Minister of Industry, Trade and Investment, Doris Aniete, disclosed in a statement at the weekend. According to her, the palliative is part of the Presidential Palliatives Programme. The program was launched in December 2023 to cushion the impact of economic hardship in Nigeria.
In the presidential palliative scheme, government had allocated N75 billion to MSMEs and another N75 billion to the manufacturing sector. The minister noted that over 700,000 business owners and manufacturers have so far applied for the palliative.
The ₦150 billion government palliative is coming amid rising cost of living and economic downturn. This has affected many business across the country with some even shutting down operations. As a result, concerns have been raised about the somewhat unpredictable business climate in Nigeria.
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The current economic hardship has been linked to the removal of fuel subsidy and the floating of the naira. This, according to experts, has jerked up the cost of production for many businesses that are now struggling to survive. Also, the cost of borrowing and servicing of loans has gone up. This is due to the Central bank of Nigeria’s increase of the interest rate to 26.5%
With this new ₦150 billion government palliative, the Federal government hopes to support manufacturers and small business owners.
For manufacturers, applicants can get up to N1 billion loan. In this case, applicants must choose between working capital or asset financing. Also, they must maintain at least a six-month business/corporate banking relationship, and provide additional documentation as required by the bank.
The minister urged business owners to take advantage of the palliative and apply as soon as possible. She said the first batch of applications are being processed and disbursement will commence soon.
