By Fredrick Nwabufo
The real sector – agricultural and industrial — is a critical factor for economic growth and development. A nation is as affluent as its industrial sector. In fact, this sector is the mitochondrion of a productive economy.
Nigeria is endowed with a vibrant consumer market – the largest in Africa. And where there is consumption, there is demand, and there should be commensurate local production. Incentivising production and creating the enabling environment for businesses to thrive are indispensable for sustainable economic growth and job creation.
Since he assumed office, President Bola Tinubu has taken ingenious decisions to ensure the blossoming of Nigeria’s industrial and sundry sectors, as well as to stimulate and pyramid the variables for job creation. For instance, he issued executive orders to enhance local production of healthcare products and incentivise agricultural and consumer goods production, in addition to effecting a full-system upgrade of the oil and gas industry.
Among the robust measures to support the manufacturing sector, inclusive of micro, small, and medium scale enterprises, is the N200 billion Presidential Intervention Fund Programme.
The fund is in three parts – the Presidential Conditional Grant Scheme (PCGS); the FGN MSME Intervention Fund, and FGN Manufacturing Sector Fund.
The Presidential Conditional Grant Scheme (PCGS) provides N50,000 grant to nano-business owners, especially women and young people, with beneficiaries from all the local government areas (LGAs) across the country.
The FGN MSME Intervention Fund is valued at N75 billion and seeks to attenuate the challenges faced by MSMEs, offering a maximum of N1 million per beneficiary at a 9 percent interest rate, while the FGN Manufacturing Sector N75 billion Fund offers support to eligible manufacturing businesses, with each beneficiary receiving up to N1 billion at a comparable interest rate.
The programme is being implemented by the Bank of Industry (BOI).
Here is a status update on the programme as of September/October 2024.
N50 BILLION PRESIDENTIAL CONDITIONAL GRANT SCHEME (PCGS}
• This scheme planned to disburse N50,000 grants to 1 million beneficiaries across the LGAs.
• The sum of N38.8 billion has been disbursed to 774,593 beneficiaries across the 774 LGAs and area councils of the FCT.
• Letters have been sent to state governors requesting additional beneficiaries (based on population) and nomination of focal persons in the respective states to complete the 1,000,000 beneficiaries target for the programme.
• Twenty-Three (23) states (Abia, Adamawa, Akwa lbom, Benue, Borno, Ebonyi, Ekiti, FCT-Abuja, Gombe, Jigawa, Kaduna, Kano, Kebbi, Kogi, Ogun, Ondo, Osun, Plateau, Sokoto, Yobe, Zamfara, Enugu, and Lagos) have responded with the details of the nominated focal persons.
• Ten (10) states (Gombe, Jigawa, Osun, Sokoto, Yobe, Taraba, Kogi, Abia, Akwa lbom, Kaduna) have sent a total of 61,055 candidate data and verification of these candidates is in progress.
N75 BILLION FGN MICRO, SMALL, AND MEDIUM SCALE ENTERPRISES (MSME} INTERVENTION FUND
• The programme seeks to disburse loans of up to N1 million to at least 75,000 beneficiaries.
• The Federal Ministry of Industry, Trade & Investment (FMITI) transferred the public database of 832,359 MSMEs to the Bank of Industry on September 3, 2024.
• Out of the above number, only 211,248 applicants submitted completed information, out of which 932 have been evaluated and approved for disbursement, which is ongoing. Other applicants with incomplete information have been contacted to submit missing documentation.
• The National Association of Small and Medium Enterprises (NASME) and the Nigerian Association of Small-Scale industrialists (NASS) have been contacted and are being involved to ensure that their membership is on-boarded to become beneficiaries. Over 412 members of NASME are being evaluated.
N75 BILLION FGN MANUFACTURING SECTOR FUND (MSF}
• The programme seeks to disburse up to N1 billion to 75 manufacturing companies.
• The funds under this programme have been fully allocated.
• The Bank received several applications directly and has processed and approved 143 manufacturing companies with a total loan value of N78.5 billion.
• As of September 24, 2024, the Bank has successfully disbursed the sum of N6.3 billion to eight manufacturing companies.
• 23 other projects valued at N9.1 billion are currently at various stages of disbursement.
• The remaining 112 companies valued at N63.1 billion are currently at various stages of meeting the conditions precedent to loan disbursement. All 143 companies being reviewed are geographically spread as follows North-Central – 13; North-West – 23; North-East- 36; South-West – 46; South-East – 18; South-South – 7.
• The Bank met with the executives of the Manufacturers Association of Nigeria (MAN) to ensure that all beneficiaries are real manufacturers. This is to provide additional validation of the loan applicants for the programme.
Fredrick Nwabufo is Senior Special Assistant to the President on Public Engagement