Made-in-Nigeria: FG to Give 100,000 Nigerian Businesses N750,000 Each

Made-in-Nigeria: FG to Give 100,000 Nigerian Businesses N750,000 Each

  • FG pledged to support 100,000 Nigerian businesses with N75 billion by next year
  • It said the move is aimed at supporting and boosting non-oil exports
  • He advised Nigerians to take advantage of the opportunity presented by the AfCFTA

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Vice President Kashim Shettima announced that the federal government will provide N75 billion in support to local businesses by March 2024 to strengthen the manufacturing sector.

According to the vice president, the N75 billion will help 100,000 start-ups and micro, small, and medium-sized businesses (MSMEs) at financing rates under 10%.

This means that Individual businesses would receive N750,000 at a single-digit interest rate.

non oil export
FG said 100,000 businesses would receive N750,000 each at a single-digit interest rate. Photo credit: Marc Romanelli, Luca Sage
Source: Getty Images

TheCable reported that Shettima stated this at the second national non-oil export conference held by the Nigerian Export Promotion Council (NEPC) on Wednesday in Abuja.

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The conference's focus is "Building a sustainable national economy through non-oil export."

This follows an earlier report that the FG plans to share N75 billion interest-free loans to market women.

Necessary infrastructure to be provided

Shettima, who was represented by Jumoke Oduwole, special adviser on the presidential Enabling Business Environment Councilexports (PEBEC) and investment, also said the necessary infrastructure to support increased non-oil export would be provided.

He asserted that there has never been a better time when consideration should be given to non-oil exports than now.

He said:

Over the years, the nation’s major source had been 80% dependent on oil revenue. Today we find ourselves in protracted situations and challenges. All indications point to the fact that we have prioritized our non-oil export. This administration will give every support to boost non-oil exports.

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Shettima further said the federal government is dedicated to promoting goods made in Nigeria.

He declared that the Tinubu-led administration administration will give MSMEs' capacity building top priority. He added that a significant emphasis would be placed on investments in human capital development.

The vice president enjoined Nigerians to take advantage of the opportunity presented by the African Continental Free Trade Area (AfCFTA) to enhance the country's worth and increase foreign exchange revenues.

Also speaking on the subject matter, Minister of Industry, Trade, and Investment Doris Uzoka-Anite expressed alarm over Nigeria's protracted mono-product economy.

Despite these difficulties, she asserted that the government's efforts to ensure diversification were starting to show promise.

According to her, the non-oil economy in Nigeria expanded by about 40% in 2022, reaching $4.820 billion. She said surpassing agriculture's 30% share and making up nearly 37% of these exports were manufactured and semi-processed goods.

She said:

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“This is a big step in the right direction. We no longer have the luxury of business as usual when it comes to the business of making sure Nigeria succeeds. We can no longer afford to export raw materials cheaply and import products at premium prices.

She said that locally produced, value-added goods that generate business and employment should be the main priority for export.

New Details emerge on World Bank's $800m loans to FG that will be shared with 50m Nigerians from June.

The Federal Government of Nigeria had recently secured a $800 million loan from the World Bank to provide palliatives for over 50 million Nigerians after removing fuel subsidy, Legit.ng reported.

The money would be shared with vulnerable persons captured in its National Social Safety Net Programme.

While the move looked generous, a finance document seen by Legit.ng revealed it would take Nigeria 25 years to complete the full repayment.

Source: Legit.ng

Authors:
Zainab Iwayemi avatar

Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science (B.sc) degree in Sociology from the University of Ilorin, Kwara State. Before Legit.ng, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via zainab.iwayemi@corp.legit.ng

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