In a bid to cushion the effects of fuel subsidy removal on the manufacturing sector and on other businesses in Nigeria, the Federal government has commenced the disbursement of the Presidential Conditional Grant Scheme to verified applicants.
The Minister of Industry, Trade and Investment, Dr Doris Uzoka-Anite in a Tweet on Tuesday revealed that the government has begun the disbursement of the N200 billion palliative loan to some applicants.
According to the Minister’s official X (formerly Twitter) handle, Anite explained that an unspecified number of beneficiaries have received their grants.
She stated that by Friday, April 19, another significant disbursement will be made to a substantial number of verified applicants.
“We are pleased to inform you that the disbursement process for the Presidential Conditional Grant Programme has officially commenced. Some beneficiaries have already received their grants, marking the beginning of our phased disbursement strategy.”
“By Friday, 19th April 2024, a significant disbursement will be made to a substantial number of verified applicants.
“It is essential to understand that disbursements are ongoing, and not all applicants will receive their grants on this initial date. However, rest assured that all verified applicants will eventually receive their grants in subsequent phases” she stated.
In February, the Federal Government, through the Ministry of Industry, Trade and Investment signed three agreements with the Bank of Industry (BOI) that would unlock over N200bn funding for businesses in Nigeria.
The first agreement enables both parties to establish the FGN Micro, Small and Medium Enterprises Intervention Fund in the sum of N75bn, while the second agreement is for the the N50bn Presidential Conditional Grant Scheme (PCGS).
The Nano Business Grant Support Section of the Presidential Palliative Program of the government would allow the sum of N50bn to be deposited as Grant and with BOI from time to time.
While the third agreement would enable both parties to set up the N75bn FGN Manufacturing Sector Fund to be deposited by FMITI with BOI from time to time for the purpose of financing projects and activities falling within the parameters of the Fund.
Under the first agreement which is the N75bn MSMEs fund, the amount would be used to finance approved projects to support micro, small and medium-scale enterprises and serve as a cushion against the high cost of production, marketing and distribution of products arising mainly from infrastructure deficiencies and other ancillary factors involving MSMEs in Nigeria.
The operation and management of the Fund would be the responsibility of BOI in accordance with the terms and conditions of the agreement.
Under the second agreement which is the N50bn Presidential Conditional Grant Scheme (PCGS), the amount would help to cushion the negative impact of the removal of fuel subsidy by the FGN, and the resulting increase in the pump prices of petroleum products in Nigeria on businesses.