Federal Government Announces Distribution Date for N75 Billion SMEs Palliative

Vice President Kashim Shettima has officially revealed the release date for the Federal Government’s N75 billion grant aimed at supporting small and medium-sized enterprises (SMEs) across the nation. The disbursement, scheduled to commence in January 2024, is a significant step in fortifying the economic resilience of small-scale businesses.

In a statement released on Tuesday, Temitola Adekunle-Johnson, the Senior Special Assistant to the President on Job Creation and MSMEs in the Office of the Vice President, highlighted that the disbursement process would be executed through a collaborative effort between the government and the Bank of Industry, utilizing existing structures for efficiency.

Adekunle-Johnson emphasized that the loans, totaling about N75 billion, would be extended to small businesses nationwide at a favorable interest rate of 9 percent. The decision to enhance the loan scheme aims to broaden the reach of beneficiaries and positively impact more livelihoods, according to the Bank of Industry.

Vice President Shettima, in a commitment made in June, pledged to expedite the distribution of the palliative funds to businesses. This commitment aligns with the broader initiative led by President Bola Ahmed Tinubu, who announced a funding of N125 billion for micro, small, and medium-sized enterprises (MSMEs) through the Presidential Palliative Loan Programme in July.

Under this comprehensive initiative, the Federal Government has allocated N75 billion to support MSMEs operating across various sectors, while an additional N75 billion will be earmarked specifically for manufacturers.

This strategic financial injection underscores the government’s dedication to fostering economic growth and stability by empowering SMEs, which are recognized as crucial drivers of employment and innovation.