The Federal Government has commenced the disbursement of its N75 billion intervention fund for manufacturers, releasing N16.1 billion to 22 companies through the Bank of Industry (BoI) in the first tranche.
The Federal Government had originally designed the N75 billion intervention fund to benefit 75 manufacturing firms, with each company expected to receive N1 billion. However, the actual rollout has differed from the initial plan.
Findings showed that 22 companies have so far received a total of N16.1 billion from the Bank of Industry (BoI) in the first tranche of disbursement. In contrast, another report suggested that as many as 140 manufacturers were captured on the list of beneficiaries.
According to The Nation, the fund is intended to strengthen manufacturers by boosting their production capacity and widening their distribution networks. Among those targeted are 75 member-companies of the Manufacturers Association of Nigeria (MAN), who are also included in the list of beneficiaries.
“The Nation also discovered that the loan disbursement began 14 months after the announcement. This is at a nine per cent annual interest rate.”
“The loan is meant to help big companies to pass through the current economic challenge and cope with production and operation costs.”
Apart from the manufacturers’ N75 billion vote in the scheme, it was learnt that the government earmarked another N75 billion to Micro, Small and Medium Enterprises (MSMEs).
The disbursements of the funds had been delayed by government bureaucratic processes, but disbursement has begun.
The Federal Government had, in December 2013, unveiled the Presidential Conditional Grant Scheme, a programme targeted at supporting businesses to navigate the economic weather caused by reforms, especially the removal of subsidy payment on petroleum products and the consolidation of foreign exchange (forex).
The government also allocated another N75 billion to Micro, Small and Medium Enterprises (MSMEs) as part of its strategy to stimulate economic growth and strengthen production and distribution within the manufacturing sector.
Under the arrangement with the Bank of Industry (BoI), 75,000 MSMEs are to receive loans of N1 million each. The scheme further allows small businesses to present their proposals to the bank in order to access additional credit facilities.
