In a nationwide broadcast on the state of the economy on Monday, July 31, 2023, President Bola Ahmed Tinubu approved N50 billion for small businesses. The money will be used to provide conditional grants to one million nano businesses and loans to 100,000 MSMEs and start-ups.
The conditional grants will be given to nano businesses in the amount of N50,000 each. Nano businesses are defined as businesses with less than five employees. The grants will be used to help these businesses cover start-up costs, such as rent, equipment, and inventory.
The loans for MSMEs and start-ups will be in the amount of N500,000 to N1 million each. The loans will be at an interest rate of 9% per annum and have a repayment period of 36 months.
President Tinubu said that the government’s goal is to “energize the very important sector of micro, small and medium-sized enterprises and the informal sector as drivers of growth.” He added that the grants and loans will “help to create jobs, boost economic activity, and reduce poverty.”
The announcement of the N50 billion loan/grant for small businesses was met with mixed reactions. Some people welcomed the news, saying that it would provide much-needed support to small businesses. Others expressed concerns about the terms of the loans, saying that the interest rate was too high and the repayment period was too short.
It remains to be seen how the N50 billion loan/grant will be implemented and how effective it will be in helping small businesses. However, the announcement is a positive sign that the government is committed to supporting small businesses and the informal sector.
Here are some additional details about the N50 billion loan/grant for small businesses:
- The grants will be distributed through the Bank of Industry (BOI).
- The loans will be distributed through commercial banks.
- The grants and loans will be available to businesses in all sectors of the economy.
- The grants and loans will be subject to certain eligibility criteria.
