The Federal Government of Nigeria has officially launched the Presidential Conditional Grant for Nano Businesses as part of the Presidential Palliative Programme. This initiative offers grants of N50,000.00 to support one million nano businesses across all 774 local government areas.
To implement this scheme, the Federal Government will work alongside State Governments, Honourable Ministers, the Nigerian Association of Small and Medium Enterprises (NASME), Senators, and House of Representatives members. They will utilize the Federal Government’s selection criteria to identify beneficiaries from their respective constituencies.
Target Beneficiaries
The program aims to support the following demographics:
- 70%: Women and Youth
- 10%: People with Disabilities
- 5%: Senior Citizens
- 15%: Other Demographics
Eligible Sectors for the Scheme
The following types of businesses can apply for the grant:
- Traders: Including single retail marketers, corner shop owners, petty traders, and market sellers.
- Food Services: Such as food and vegetable vendors.
- ICT: Covering business centre operators, battery chargers, recharge card vendors, and call centre agents.
- Transportation: Including wheelbarrow pushers and independent dispatch riders.
- Creatives: Such as makeup artists, fashion designers, and dry cleaners.
- Artisans: Including vulcanizers, shoemakers, painters, and repairers.
Loan Eligibility Criteria
For loans up to N1 million, the following criteria apply:
A) Eligibility Criteria
- Existing businesses must have been operational for at least one year.
- Start-ups need to be registered businesses.
- Applicants must provide CAC (Corporate Affairs Commission) business registration documents.
- For existing businesses, a bank statement for one year is required; for start-ups, the bank statement of the Chief Promoter (Director or Business Owner) for one year is necessary.
- Applicants must demonstrate the required monthly turnover and fulfill any additional requirements set by the bank.
B) Security
- A personal guarantee from the promoter.
- Acceptance of a BVN Covenant (Global Standing Instruction – GSI) and any other requirements specified by the bank.
C) Repayment Frequency
- Monthly equal installments (no moratorium) over a period of three years.
For Manufacturers (up to N1 billion for Working Capital or Asset Financing)
A) Eligibility Criteria
- A minimum of six months of business or corporate banking relationship.
- Provision of CAC business registration documents.
- Twelve months of bank statements from another bank.
- Any additional documentation required by the bank.
B) Security
- As required by the bank.
C) Repayment Terms
- Asset Financing: Six months moratorium on principal and interest, followed by a five-year repayment period.
- Working Capital Financing: Twelve months of equal installments for both principal and interest.
How to Apply
To apply for this program, click the links below:
- For Loans, click here.
- For Grants, click here.
Leave a Reply