In a bid to bolster the Nigerian economy, the Federal Government has unveiled a substantial loan initiative aimed at supporting Medium, Small, and Micro Enterprises (MSMEs).
The announcement was made by the Minister of Information and National Orientation, Mohammed Idris, during a recent Media Activation and Town Hall Meeting in Abuja on Tuesday.
Idris emphasized the critical role of small businesses in Nigeria’s economic landscape, stating, “The goal is to diversify the Nigerian economy further, create jobs, promote value-addition, revitalize our communities, and boost exports and foreign exchange inflows.” He highlighted that MSMEs are pivotal to economic stability, employing over 80 percent of the nation’s workforce and contributing nearly half of its GDP.
Acknowledging the hurdles presented by ongoing economic reforms, Idris reassured citizens of the government’s dedication to mitigating the temporary hardships faced by vulnerable populations.
“These single-digit loan facilities will be complemented by ongoing tax reforms designed to reduce the tax burden on Nigerian businesses,” he added.
“The loan program will be rolled out in phases, beginning with a 200 billion Naira federal intervention, which includes 50 billion Naira designated as one-off conditional grants for Nano-businesses within the MSME sector. An additional 75 billion Naira will target Micro, Small, and Medium enterprises in the subsequent phase.
The Minister emphasized the government’s dedication to fairness and transparency, saying, “This government provides equal and fair opportunities for all,” and assured that access to these loans will not be influenced by connections or political favouritism.
To encourage participation throughout the country, the government is holding town hall meetings in all six geo-political zones to collect feedback from MSMEs and promote their involvement with the new loan opportunities.
Idris recognized the joint efforts of the Office of the Vice President and the Bank of Industry in advancing this initiative, and encouraged public information agencies to improve awareness of the Federal Government’s intervention programmes.
