The Federal Government of Nigeria has announced the initiation of its Presidential Palliative Programme, in a move aimed at cushioning the effects of the recent fuel subsidy removal. This strategic intervention, comprising the Presidential Conditional Grant Programme and the Presidential Palliative Loan Programme, is designed to provide financial relief to various segments of the population.
Dr. Doris Uzoka-Anite, the Minister for Industry, Trade, and Investment, disclosed the details of the programmes in a statement issued on Sunday. According to the statement, the Presidential Conditional Grant Programme will involve the disbursement of a grant sum of N50,000 to nano businesses spread across the 774 local government areas in the country.
The collaboration for this programme extends to multiple stakeholders, including state and local governments, federal legislators, federal ministers, banks, and other key players. Eligible beneficiaries are required to furnish proof of residential or business address in their respective local government areas. Additionally, they must provide relevant personal and bank account information, including the Bank Verification Number (BVN) for identity verification.
Simultaneously, the Presidential Palliative Loan Programme is set to allocate N75 billion to micro, small, and medium-sized enterprises (MSMEs) across various sectors, with an additional N75 billion specifically earmarked for manufacturers. Notably, these loans will be offered at a single-digit interest rate of nine percent per annum.
Under the loan programme, MSMEs can access facilities of up to N1 million, with a repayment period of three years. Meanwhile, manufacturers have the opportunity to secure loans of up to N1 billion, to be utilized for working capital with a repayment period of one year, or for the purchase of machinery and equipment with a repayment period of five years.
This development comes in the wake of the removal of fuel subsidies, a decision that stirred public discourse and concerns about its potential impact on the cost of living. The introduction of these palliative measures reflects the government’s commitment to mitigating the socio-economic repercussions of this policy shift.
- Tags: fuel subsidy, Nigeria, palliatives
