No fewer than 100,000 nano-businesses across the Federation have received the initial disbursement of N50,000 through the Presidential Conditional Grant Scheme, also known as the Trade Grants Scheme.
The Minister of Industry, Trade and Investment, Doris Uzoka-Anite, gave the figure in an exclusive chat with our correspondent on Friday.
Nano businesses are enterprises that have one or two workers and less than an annual turnover of N3 million, according to the Small and Medium Enterprises Development Agency of Nigeria.
The minister, speaking through her aide, Terfa Gyado, confirmed that the disbursement began a few weeks ago and would be distributed to 1,291 nano businesses per Local Government.
Earlier in December 2023, the Federal Government announced the Presidential Conditional Grant Scheme to empower nano businesses as part of the Presidential Palliatives Programme.
It said the fund totalling N200 billion would be disbursed through the Bank of Industry to support manufacturers and businesses across the country.
The Trade Grant Scheme, which initially was to take off on March 9, 2024, offers financial grants, without repayment obligations, to eligible small business owners operating in various sectors, such as trading, food services, ICT, transportation, creative and artisans.
On Wednesday, the minister announced in a statement that the distribution had commenced.
However giving an update in the chat, the trade minister stated that all verified applicants would receive their grants in subsequent phases as the ministry continues to receive verified data from the states.
Aniete said, “The Presidential Conditional Grant Scheme kicked off a few weeks back and disbursement has been made to the first batch. Each grant applicant gets N50,000 while the applicants are judged by the criteria of owning a nano business and being verified using their Bank Verification Number and their National Identification Number.
“So those who were successfully verified on the nature of their business and all other criteria have been able to get some of the initial disbursement.
Speaking further, the minister said the grant was paid directly to beneficiaries’ accounts after proper verifications with a target to reach one million small businesses in the 774 LGs and the six council areas in the Federal Capital Territory.
“The target is for one million nano businesses across the 774 Local Governments across the Federation and that works out to a total of 1,291 nano businesses per local government and that is how the spread is going to be.
“So far, the disbursement has hit about 100,000 small businesses and they have gotten the initial disbursement and the target remains one million. Disbursement is still ongoing and we are still waiting for data from across all the states and it is an ongoing process,” the minister stated.
This development comes eight months after President Tinubu announced the grant for manufacturers and small businesses, and two weeks after applicants were directed to submit their NINs as part of the requirements to obtain the grant earmarked to cushion the effect that recent economic reforms have had on businesses in the country.