In a nationwide broadcast on Monday evening, President Bola Tinubu announced a ₦75 billion to fund 75 enterprises in the manufacturing sector. ₦125 billion has also been earmarked to support micro and small businesses.
President Bola Tinubu has announced a plan to support small businesses and startups in Nigeria in response to the country’s current economic challenges. In a nationwide broadcast on Monday evening, Tinubu disclosed that his government intends to spend N75 billion between July 2023 and March 2024 to strengthen the manufacturing sector. According to the president, the fund will support 75 enterprises, each accessing “N1 billion credit at 9% per annum with a maximum of 60 months repayment for long-term loans and 12 months for working capital”. However, how this policy will be implemented wasn’t stated.
N125 billion has also been earmarked to “energise” the informal sector, especially micro, small, and medium-sized enterprises (MSMEs). Nigeria reportedly has over 39 million MSMEs. “Out of the sum, we will spend N50 billion on a 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,” Tinubu said in his broadcast speech.
Since taking office in May, President Tinubu introduced several reforms—notably the removal of fuel subsidies and liberalization of the exchange rate windows—with far-reaching effects on the Nigerian economy. Nigeria’s headline inflation, for instance, hit a seven-year high of 22.79% in June, driven by a rise in the prices of food. But experts and investors are optimistic about the eventual benefits of the aggressive but market-friendly approach of the new government.
The Tinubu administration will also fund 100,000 MSMEs and start-ups with N75 billion. Each beneficiary will access between N500,000 to N1 million at 9% interest per annum and a repayment period of 36 months, the president disclosed.