The federal government has concluded plans to disburse N75 billion to strengthen the nation’s manufacturing sector.
Disclosing this during his address to Nigerians on Monday, President Bola Tinubu said the money will be spent between July 2023 to March 2024.
According to him, besides strengthening the manufacturing sector, the money would also be used to increase its capacity to expand and create good paying jobs. “Our objective is to fund 75 enterprises with great potential to kick-start a sustainable economic growth, accelerate structural transformation and improve productivity. Each of the 75 manufacturing enterprises will be able to access N1 Billion credit at 9% per annum with maximum of 60 months repayment for long term loans and 12 months for working capital”.
While urging Nigerians to bear with the government , Tinubu said, “Our administration recognises the importance of micro, small and medium-sized enterprises and the informal sector as drivers of growth. We are going to energise this very important sector with N125 billion”
Giving a breakdown of how the money would be expended, he said, “out of the sum, we will spend N50 billion on Conditional Grant to 1 million nano businesses between now and March 2024. Our target is to give N50,000 each to 1,300 nano business owners in each of the 774 local governments across the country. Ultimately, this programme will further drive financial inclusion by onboarding beneficiaries into the formal banking system. In like manner, we will fund 100,000 MSMEs and start-ups with N75 billion. Under this scheme, each enterprise promoter will be able to get between N500,000 to N1million at 9% interest per annum and a repayment period of 36 months”.
Explaining the government’s resolve to ensure that prices of food items remain affordable, he noted that a multi-stakeholder engagement with various farmers’ associations and operators within the agricultural value chain is currently being facilitated, adding that, “in the short and immediate terms, we will ensure staple foods are available and affordable.”
To this end, Tinubu said he has ordered the release of 200,000 Metric Tonnes of grains from strategic reserves to households across the 36 states and FCT to moderate prices. “We are also providing 225,000 metric tonnes of fertilizer, seedlings and other inputs to farmers who are committed to our food security agenda”.
He noted that, the government plans to support cultivation of 500,000 hectares of farmland and all-year-round farming practice remains a priority as N200 billion out of the N500 billion approved by the National Assembly will be disbursed as follows:
“Our administration will invest N50 billion each to cultivate 150,000 hectares of rice and maize.
-“N50 billion each will also be earmarked to cultivate 100,000 hectares of wheat and cassava.
He said, “this expansive agricultural programme will be implemented targeting small-holder farmers and leveraging large-scale private sector players in the agric business with strong performance record.
In this regard, the expertise of Development Finance Institutions, commercial banks and microfinance banks will be tapped into to develop a viable and an appropriate transaction structure for all stakeholders”
