President Bola Tinubu has announced the approval of N275 billion for the immediate resuscitation of the manufacturing and Micro, Small, and Medium-Sized Enterprises (MSMEs) in Nigeria. This move is part of the government’s efforts to cushion the effects of the fuel subsidy removal and support the country’s economy.
During a nationwide broadcast on Monday, President Tinubu stated that N75 billion would be allocated between July 2023 and March 2024 to strengthen the manufacturing sector. The objective is to fund 75 enterprises with great potential to stimulate sustainable economic growth, facilitate structural transformation, and enhance productivity. Each manufacturing enterprise will have access to a credit of N1 billion at an interest rate of 9% per annum, with repayment periods of up to 60 months for long-term loans and 12 months for working capital.
In addition to the manufacturing sector, N125 billion will be made available to energize the MSME sector, which is considered a key driver of economic growth. President Tinubu emphasized the significance of micro, small, and medium-sized enterprises, as well as the informal sector. The government plans to disburse N50 billion as a conditional grant to 1 million Nano businesses between July 2023 and March 2024. The aim is to provide N50,000 each to 1,300 Nano business owners in all 774 local governments across the country. This initiative aims to foster financial inclusion and integrate beneficiaries into the formal banking system.
Furthermore, an additional N75 billion will be allocated for 100,000 MSME start-ups at an interest rate of 9%, repayable over 36 months. This funding will provide much-needed support to aspiring entrepreneurs and small business owners.
President Tinubu emphasized the positive impact of the removal of the fuel subsidy, revealing that his administration has saved over one trillion Naira in just two months. These savings will now be strategically invested in various socio-economic sectors to benefit the Nigerian people. For instance, the government will fulfill its promise of making education more affordable and providing loans to students in need, ensuring that no student has to abandon higher education due to financial constraints.
Regarding the effects of the exchange rate and inflation on gasoline prices, President Tinubu reassured the nation that the government would intervene if necessary.
In conclusion, President Tinubu’s approval of N275 billion for manufacturing and MSME resuscitation demonstrates the government’s commitment to stimulating economic growth, accelerating structural transformation, and supporting small businesses. These initiatives aim to create job opportunities, drive financial inclusion, and ensure that Nigeria’s economy thrives. With the savings from the fuel subsidy removal, the government is poised to invest in essential sectors and uplift the lives of its citizens.
