The Federal Government has initiated the disbursement of a N75 billion loan aimed at supporting the manufacturing sector, following a 14-month delay since the initiative’s announcement.
The funds, provided through the Bank of Industry (BOI) at an annual interest rate of 9%, are designed to assist larger companies in managing production costs and adapting to current economic challenges.
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EKO HOT BLOG reports that the Director-General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, confirmed the loan rollout during an interview with Punch.
He explained that the loan distribution is part of the Presidential Conditional Grant Scheme, introduced in December 2023 to help manufacturers and businesses mitigate economic impacts resulting from recent government policies.
Ajayi-Kadir detailed that 75 eligible manufacturing companies will each receive N1 billion, with distribution coordinated under a memorandum of understanding signed between MAN and BOI.
The MOU, finalized during the Nigerian Economic Summit Group (NESG) meeting, specifies that only registered MAN members will be eligible for the funding, ensuring transparency and accountability in the allocation process.“This structured approach enables us to monitor and account for how each company utilizes the loan,” Ajayi-Kadir stated.
“While this funding is modest relative to the significant economic strain on the industry, it remains a vital part of the government’s economic stabilization strategy.”
The disbursement, however, has faced delays due to bureaucratic hurdles, leaving many companies waiting for critical financial support. Previously, former Minister of Industry, Trade, and Investment Doris Aniete reported that over 700,000 manufacturers and MSMEs had initially shown interest in the program.
Ajayi-Kadir affirmed that while the funds may not fully cover the industry’s financial needs, they are crucial in aiding recovery and reinforcing economic growth in the manufacturing sector.
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