Business and Economy

How to Access Federal Government’s N1 Billion Loan for Large Enterprises

The Nigerian government has unveiled the significant amount of funds that will be made available to businesses seeking loans. The Minister of Finance announced that large businesses will have the opportunity to borrow up to N1 billion, while small businesses can access loans of up to N1 million. These loans will be offered at an interest rate of 9%.

The Minister emphasized the government’s commitment to providing swift and substantial assistance. Small-scale enterprises can secure loans of up to N1 million, while larger industries are eligible for loans of up to N1 billion, both at a reasonable interest rate.

“Our priority is to ensure that we accelerate the speed and scale of the support available. We are offering loans at a 9% interest rate for medium-scale enterprises, with a maximum of N1 million for small enterprises.

“For larger enterprises, we are providing funding of up to N1 billion at a 9% interest rate. This will enable manufacturing firms to invest, stimulate economic growth, create employment opportunities, and increase the production of goods, ultimately contributing to the reduction of inflation.

“As mentioned earlier, the government collaborated with the private sector, the manufacturers’ association, stakeholders, and governors to develop an economic stabilization plan and implement the announced measures,” stated Edun.

Addressing the Central Bank’s high-interest rate, Edun acknowledged that the apex bank’s stance has been effective in curbing inflation. He highlighted that the inflation rate has gradually decreased each quarter this year compared to the previous year.

According to Edun, it is crucial for the government to remain steadfast in its efforts to reduce inflation and stabilize the prices of goods and services.

“It is uncommon for monetary authorities to prioritize combating inflation and reducing prices in general. We have witnessed consistent growth quarter by quarter, with an increase of approximately 2.9% compared to population growth. The economy is moving in the right direction.”

DETAILS OF THE Federal Government’s N1 Billion Loan for Large Enterprises

The Manufacturing Intervention Fund (MIF) is a scheme that aims to support the growth and development of the manufacturing sector in Nigeria. It focuses on promoting job creation, import substitution, and economic diversification.

  • To access the Fund, potential beneficiaries need to meet certain qualifications.
  • They can apply for a maximum loan amount of N1 billion and
  • Interest rate for the loan is set at nine percent per annum (9% per annum) .
  • Beneficiaries have a ten-year period to repay the principal sum and interest charge on the loan.
  • One of the key elements of the Fund is its revolving nature. Repayments from previous beneficiaries are used to provide loans to new businesses, ensuring a continuous flow of funds.
  • To access the Manufacturing Intervention Fund, interested parties can reach out to the agency responsible for its implementation, which is the Federal Government.
  • The Fund provides affordable financing options to manufacturers, helping them to expand their operations and contribute to the growth of the Nigerian economy.

ELIGIBLE BUSINESSES: Federal Government’s N1 Billion Loan for Large Enterprises

  • The Fund is designed to benefit operators in various categories, including small, medium, or large enterprises operating in the manufacturing sector.
  • Additionally, companies looking to expand or establish new manufacturing facilities, as well as businesses involved in import substitution and export promotion, can also apply for the Fund.

ACCESSIBILITY CRITERIA: Federal Government’s N1 Billion Loan for Large Enterprises

  • To access the Manufacturing Intervention Fund (MIF), businesses must meet certain qualifications.
  • These qualifications include being registered as a business in Nigeria with the Corporate Affairs Commission (CAC) and operating as a manufacturer in an eligible sector within the Fund’s scope.
  • Additionally, businesses must fulfill the eligibility criteria established by the implementing agency.
  • these criteria encompass having an equity ownership of 51 percent or more by Nigerians, maintaining a minimum turnover, possessing a positive credit history, and having a bankable business plan.

HOW TO ACCESS THE FUND: Federal Government’s N1 Billion Loan for Large Enterprises

  • To apply for the Manufacturing Intervention Fund, interested businesses must complete and submit the Application Form along with the necessary supporting documents.
  • These documents include the
    • Business Plan,
    • Financial Statements,
    • Feasibility Study,
    • Certificate of Incorporation,
    • Tax Clearance Certificate.
  • To access more information and submit applications, businesses are encouraged to visit the Bank of Industry website or reach out to any of its branches located in at least 30 states across Nigeria.

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