Federal Government Begins ₦50,000 Federal Government Grant Disbursement Businesses And Beneficiaries of Npower

According to Npower News, the federal government has officially kicked off the disbursement of the grant-money ₦50,000 federal government grant otherwise known as the FG Grant, to businesses across the Federation. Businesses, defined by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) as enterprises with one or two workers and an annual turnover of less than N3,000,000, are the primary beneficiaries of this federal government grant.

According to Npower News, the Minister of Industry, Trade, and Investment, Doris Uzoka-Anite, announced this development yesterday in Abuja.

The Minister of Industry, Trade, and Investment, Doris Uzoka-Anite disclosed that the disbursement process has already started, with several businesses, individuals and beneficiaries of Npower having received their federal government grants. The phased disbursement strategy ensures that the distribution of the FG grant is gradual and systematic.

Commenting on this development, the chief executive officer of Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf said that the decision to make available this concessionary financing for manufacturers is a very good one because cost of funds at this time is extremely high as a result of the monetary policy tightening.

The chief executive officer of Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf also said that “right now interest rates are as high as 30 percent. So, at this point, the fund is being available at a much lower interest rate, possibly a single digit, and with a longer tenure. If it is like that, then that will be very beneficial to the manufacturers. We also need to know the conditions for giving out the loan.”

According to the chief executive officer of Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, we have had instances in the past where the kind of collateral requirements are so difficult to meet. As such, many of the intended beneficiaries are not able to access the loan. Because of the very stringent collateral requirements.

“So, the government should make the facility more accessible to the entrepreneurs or the manufacturers. A significant disbursement is scheduled for Friday, April 19, 2024, when a substantial number of validated applicants will receive their federal government grants." However, the minister emphasised that not all applicants will receive their grants on this initial date, as the disbursement process of the federal government grant is ongoing.

Meanwhile, the Minister of Industry, Trade, and Investment, Doris Uzoka-Anite reassured all verified applicants of the FG grant that they would eventually receive their federal government grants in subsequent phases and urged patience as the applications were diligently processed.

The federal government grant announced as part of the Presidential Palliatives Programme in December 2023, aims to empower businesses across various sectors such as trading, food services, ICT, transportation, creative arts, and artisans.

The federal government grant targets specific demographics, including 70 percent women and youths, 10 percent people with disabilities, 5 percent senior citizens, and the remaining 15 percent distributed to other groups.

Each beneficiary will receive a non-repayable federal government grant of ₦50,000 directly into their bank accounts. The federal government grant scheme is set to impact one million small businesses across the 774 local government areas and six council areas in the Federal Capital Territory (FCT).

To reach one million beneficiaries in every local government area and the FCT, the Minister of Industry, Trade, and Investment, Doris Uzoka-Anite highlighted the potential of the federal government grant to significantly uplift communities nationwide.

https://leadership.ng/fg-begins-n50000-trade-grant-disbursement-to-nano-businesses/