FG Launches nationwide MSME support with grants, loans to boost small businesses

The Federal Government has launched the Presidential Grants and Loan Scheme for Micro, Small, and Medium Enterprises (MSMEs) across Nigeria, aiming to bolster small businesses and mitigate the impact of recent economic reforms, such as the fuel subsidy removal. The initiative, managed in partnership with the Bank of Industry (BOI), is set to provide both grants and loans to MSMEs across all 774 local governments.

In Ogun State, the BOI reported that over 20,000 nano businesses have benefited from the scheme, receiving grants of N50,000 each. This brings the total disbursement in the state to over N1 billion. Michael Agidani, BOI’s State Manager in Ogun, highlighted the scheme’s transformative impact at a recent town hall meeting, noting that the initiative revitalizes small businesses, promotes economic stability, and cushions citizens against rising costs. “So far, over N1 billion has been disbursed, benefiting over 20,000 businesses across 20 local government areas, with a target of 1,000 beneficiaries per LG,” Agidani explained.

The scheme includes three major components: a N75 billion loan fund for MSMEs, an additional N75 billion for the manufacturing sector, and a N50,000 grant aimed specifically at nano businesses to boost grassroots economic growth.

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In Bauchi, BOI’s branch manager, Isa Nadada, outlined that each qualifying MSME can access up to N1 million in financing. Nadada, represented by BOI Project Officer Kabiru Musa, emphasized that the program’s goal is to stimulate economic recovery and support MSMEs nationwide. The scheme offers favorable terms, with a 9% all-inclusive interest rate, a three-year tenure, and a six-month moratorium on repayments.

The initiative has also garnered support from local officials, including Bauchi’s Commissioner for Cooperatives, Small and Medium Enterprises Development, Mohammed Shira, who commended the Federal Government for its commitment to small business development. Shira remarked, “Together, we can build a sustainable framework that not only addresses the immediate needs of our businesses but also lays the foundation for long-term growth. The Bauchi State government stands ready to support these businesses through the Ministry of Cooperatives, Small and Medium Enterprises Development.”

In Akwa Ibom, the state government launched its own N75 billion MSME fund as part of the national initiative, demonstrating the scheme’s growing footprint across the nation.

With continued expansion, the Presidential Grants and Loan Scheme reflects the government’s drive to empower MSMEs and promote economic inclusivity, providing critical resources to help small businesses thrive in challenging economic conditions.