The Bank of Industry (BoI) has announced its plans to distribute a total of N200 billion across three funding categories to bolster support for manufacturers and businesses nationwide.

According to a statement released by the development bank, the funds encompass the Presidential Conditional Grant Scheme, the FGN MSME Intervention Fund, and the FGN Manufacturing Sector Fund.

Under the Presidential Conditional Grant Scheme, a N50 billion grant initiative has been allocated to assist eligible nano business owners.

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This grant, targeted at a minimum of 1,000 beneficiaries, particularly women and youths, will be distributed across the 774 local government areas and six council areas in the Federal Capital Territory.

The scheme aims to support various nano businesses including traders, food vendors, ICT businesses, transporters, artisans, and creatives, among others.

Beneficiaries are not required to repay the grant, but they must fulfill certain eligibility criteria such as business registration, expansion plans, and staffing requirements.

The FGN MSME Intervention Fund, amounting to N75 billion, is designated to aid Micro, Small, and Medium Enterprises (MSMEs) in Nigeria.

This fund will assist MSMEs in mitigating the high costs associated with production, marketing, and distribution due to infrastructure deficiencies and other related factors.

Each beneficiary of the MSME Intervention Fund will receive a maximum of N1 million at an interest rate of nine percent per annum, covering equipment and working capital expenses over a specified period.

Similarly, the FGN Manufacturing Sector Fund, also valued at N75 billion, will support eligible manufacturing companies facing challenges related to production costs and infrastructural deficits.

Beneficiaries will receive up to N1 billion at a nine percent interest rate per annum, with different tenors for term loans and working capital.

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The disbursement of these funds aligns with the Federal Government’s commitment to ameliorate the impact of recent economic reforms on businesses.

In response to demands by organized labor for government intervention, President Bola Tinubu pledged loans and grants to support businesses during a televised broadcast.