Federal Government, through the Bank of Industry, has released N16.1 billion to 22 manufacturing companies as the first tranche of disbursement under its N75 billion fund.
According to findings, the plan was originally to support 75 companies with N1 billion each. However, only 22 firms have so far accessed the N16.1 billion, while another report indicated that 140 manufacturers were listed as potential recipients.
The funds are targeted at boosting the production capacities of manufacturing companies and expanding their distribution channels. Seventy-five registered companies under the Manufacturers Association of Nigeria (MAN) are among those earmarked to benefit from the scheme.
Investigations showed that the disbursement began 14 months after the initiative was announced. The facility is offered at a nine per cent annual interest rate. Officials explained that the loan is expected to help large manufacturers manage economic challenges and sustain operations despite rising costs.
A source revealed, “The delay was caused by government bureaucratic processes, but the disbursement has now started.”
Beyond the manufacturing sector, the Federal Government also allocated another N75 billion to Micro, Small and Medium Enterprises (MSMEs) under the same programme. This part of the intervention is designed to assist smaller businesses with access to affordable credit.
The Nation recalled that in December 2013, government introduced the Presidential Conditional Grant Scheme to support businesses affected by reforms, including the removal of fuel subsidy and challenges around foreign exchange. The current intervention follows the same direction of providing access to funds to sustain businesses.
Under the agreement with the Bank of Industry, the N75 billion for MSMEs is meant to cover 75,000 enterprises, each expected to receive N1 million. The plan allows small businesses to submit proposals to the bank and access credit facilities to aid operations.