The Nigerian federal government has initiated the process of disbursing loans to micro, small, and medium enterprises (MSME) as well as the manufacturing sector. This signifies the commencement of operations for the MSME and Manufacturing segments under the prestigious Presidential 200 Billion Naira Intervention Fund. Eligible enterprises are invited to participate in this transformative initiative by applying through the official application portal at www.fedgrantandloan.gov.ng.
Requirement
- Businesses must have been in operation for at least one year or be registered start-ups.
- Submission of CAC business registration documents.
- Provision of the company’s bank statement for existing businesses or the chief promoter’s bank statement for start-ups.
- Fulfillment of the required monthly turnover and compliance with other specifications outlined by the bank.
Security measures:
- Personal guarantee from the promoter.
- Agreement to the bank verification number (BVN) covenant.
- Adherence to global standing instruction (GSI) and other securities as stipulated by the bank.
Criteria for manufacturer loans up to N1B:
- Choice between working capital or asset financing.
- Sustaining a business/corporate banking relationship for a minimum of six months.
- Submission of additional documentation as requested by the bank.
- Asset financing entails a 5-year repayment period while working capital financing includes a 6-month moratorium on principal and interest, followed by a 12-month equal instalment repayment plan.
Selection Process
The Federal Government, in partnership with State Governments, Honourable Ministers, NASME (Nigerian Association of Small and Medium Enterprises), Senators, and House of Representative Members, will utilize the following selection criteria to identify beneficiaries from their respective constituents. The aim is to prioritize 70% women and youth, 10% people with disabilities, and 5% senior citizens, with the remaining 15% allocated to other demographics.
Method of Application
To apply for the Federal Government Grants and Loans Scheme, the National Identification Number (NIN) is a crucial requirement. Loan applicants who have previously completed the form should log in and update their loan application with their NIN. Similarly, grant applicants are required to update their NIN by visiting the following link: https://grant.fedgrantandloan.gov.ng/auth/nin/register.
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