Why FG’s N200b intervention fund targets MSMEs — Tinubu’s aide

The Federal Government has explained why it disclosed the availability of the N200 billion Presidential Intervention Fund for Micro, Small, and Medium Enterprises (MSMEs), facilitated through the Bank of Industry (BOI) nationwide.

Senior Special Assistant to the President on Job Creation and MSMEs, Tola Adekunle-Johnson, spoke Tuesday at a town hall meeting held in Abuja for MSMEs and Manufacturing Enterprises introduced under the President Bola Tinubu-led administration.

This is even as Minister of Information and National Orientation, Mohammed Idris, declared that boosting small businesses is integral to the economic reform agenda of the Federal Government.

He said the government is targeting the MSMEs with its intervention programmes because they remain the engine of the Nigerian economy. Collectively, they employ over 80 percent of the nation’s labour force and contribute nearly half of the national GDP.

“The goal is to diversify the Nigerian economy further, create jobs, promote value addition, revitalise our communities, and boost exports and foreign exchange inflows. We are also keen to ensure that these targeted support programmes go a long way towards alleviating the pains and challenges being experienced on account of the bold economic reforms being implemented to put our country back on track for sustainable growth and prosperity.

“We fully recognise that these reforms may have caused temporary hardships, especially for vulnerable populations, and we will do everything in our power to cushion the discomfort. These single-digit loan facilities will be complemented by the ongoing tax reforms designed to reduce the tax burden on Nigerian businesses,” he said.

The minister stated that to ensure no part of the country is left behind, similar town hall meetings were held simultaneously across the six geopolitical zones of the country to gauge the sentiments of MSMEs and mobilise them to take advantage of the interventions to further enhance their businesses.

Idris said the first phase of the programs is the N200 billion Federal intervention, amounting to N50 billion, which was disbursed as one-off conditional grants, targeted at the Nano-businesses segment of the MSMEs.

He said the second phase of N75 billion is targeted at the Micro, Small, and Medium businesses.

The Minister stated that, under the Tinubu Social Intervention Programmes, applicants only need to submit their applications to access the interventions without requiring connections or knowing someone in government.

“But as we have seen with many of the programs of the Tinubu administration, from the Students Loan Fund (NELFUND) to the Consumer Credit initiative, the Presidential CNG initiative, and also the 50 billion Naira grant fund component of this presidential grant and loan scheme, you do not need connections to enjoy the renewed hope being delivered by President Bola Ahmed Tinubu.

“This is a government of equal and fair opportunities for everyone, and I have no doubt that the selection process for these loans will be guided by the same principles of equity and transparency that the President is determined to entrench in governance in Nigeria,” he said.

Specifically, the intervention fund is established to support Nigerian MSMEs towards driving economic growth and job creation in line with the President’s Renewed Hope Agenda.

Adekunle-Johnson explained that the program, held simultaneously in Ogun, Bauchi, Enugu, Kaduna, Akwa Ibom states, and the FCT, is aimed at educating MSMEs on the conditions for accessing the loan.

“MSMEs can walk into any Bank of Industry from today and apply for this loan. It is a single-digit loan, it is nine percent, it is fixed. No hidden charges.

“This is the one and only single-digit loan you can get, and you can get up to one million naira.

“Why it is important for us to sensitise you is so that you don’t fall into the hands of people who will tell you to bring money,” he said.

The presidential aide said that his office had been collaborating with the Bank of Industry, which is an important implementing agency for the scheme.

“If you need any information, if you are not sure of anything, go to the Bank of Industry.

“Once you provide the requirements, you will get your loan immediately,” Adekunle-Johnson said.

Managing Director of BOI, Dr. Olasupo Olusi, said the N200 billion Presidential Intervention Fund for MSMEs and Manufacturing Enterprises was established to support them towards driving economic growth and job creation.

He said MSMEs are the driving force behind the non-oil economy, contributing significantly to innovation, economic growth, and job creation in the agriculture, manufacturing, and services sectors.

Represented by Mabel Ndagi, Executive Director, Public Sector and Interventions at BOI, Olusi said, “Despite the immense contribution to economic growth, MSMEs struggle to access the necessary funding to reach their full potential.

“In recognition of this, the Federal Government introduced the N200 billion intervention fund for MSMEs and Manufacturing Enterprises.

“And appointed the Bank of Industry as the executing agency to implement this initiative,” he said.

He reiterated that BOI remains committed to playing its part in promoting and supporting MSMEs growth across the country.

Also, the Managing Director of Access Bank Plc, Mr. Roosevelt Ogbonna, said the bank is committed to supporting MSMEs, saying, “We want to be known as Nigeria’s MSMEs bank.

“And that is where our focus is as a bank. We want to be known as Nigeria’s women bank,” he said.