The federal government has officially begun the disbursement of the N50,000 Presidential Conditional Grant Scheme, also known as the Trade Grants Scheme, to nano businesses across Nigeria. These nano businesses, which are defined as enterprises with one or two workers and an annual turnover of less than N3 million, are the primary beneficiaries of this initiative.
Minister of Industry, Trade, and Investment, Doris Uzoka-Anite, made this announcement in Abuja yesterday. She revealed that the disbursement process has already started, with several beneficiaries already receiving their grants. To ensure a smooth distribution of funds, the disbursement is being done in phases.
Dr. Muda Yusuf, the chief executive officer of the Centre for the Promotion of Private Enterprise (CPPE), praised the government’s decision to provide concessionary financing for manufacturers. He explained that the current high cost of funds, with interest rates as high as 30 percent, makes this initiative extremely beneficial. By providing funds at a lower interest rate, possibly in single digits, and with a longer repayment period, manufacturers will be able to access much-needed capital. However, Yusuf also emphasized the importance of clarifying the conditions for granting the loan, as strict collateral requirements have previously hindered access to funds.
A significant disbursement is scheduled for Friday, April 19, 2024, where a substantial number of validated applicants will receive their grants. It’s important to note that not all applicants will receive their grants on this initial date, as the disbursement process is ongoing. The minister assured all verified applicants that they will eventually receive their grants in subsequent phases and urged them to be patient as their applications are processed.
The Trade Grants Scheme, introduced as part of the Presidential Palliatives Programme in December 2023, aims to empower nano businesses across various sectors such as trading, food services, ICT, transportation, creative arts, and artisans. The scheme specifically targets certain demographics, including 70 percent women and youths, 10 percent people with disabilities, 5 percent senior citizens, and the remaining 15 percent distributed to other groups.
Each beneficiary will receive a non-repayable grant of N50,000 directly into their accounts. The program is expected to have a positive impact on one million small businesses across the 774 local government areas and six council areas in the Federal Capital Territory (FCT).
Minister Uzoka-Anite highlighted the potential of the program to significantly uplift communities nationwide. The aim is to reach one million beneficiaries in every local government area and the FCT. This Trade Grants Scheme holds great promise in supporting nano businesses and fostering economic growth at the grassroots level.
