FG Secures $1 Billion Syndicated Loan For Nigerians, How To Apply

FG has secured $1 billion syndicated loan for Nigerians.

NewsOne Nigeria reports that a syndicated loan is offered by a group of lenders who work together to provide credit to a large borrower.

According to the details of the $1 billion syndicated loan, at least 300,000 self-employed artisans will get a N30,000 loan with 100,000 MSMEs receiving N50,000 from a new federal government’s scheme intended to support Micro, Small and Medium Enterprises (MSMEs).

This online news platform understands that the development is as the Federal Government led by President Muhammadu Buhari, under the supervision of the Ministry of Industry, Trade and Investment, the Bank of Industry has secured a $1 billion syndicated loan to that effect.

The Minister of Industry, Trade and Investment, Adeniyi Adebayo, disclosed this on Monday, March 23, at the Quantum Mechanics Limited MSMEs Survival Fund capacity building programme in Abuja, Nigeria’s capital.

In a statement by his media aide, Ifedayo Sayo, the minister said the loan would improve the bank’s capacity to support MSMEs across key sectors of the Nigerian economy.

The statement stressed that the loan, being implemented in conjunction with international partners, had a long-term tenor, alongside moratorium benefits.

How to apply for FG $1 Billion Syndicated Loan

According to the statement,

“There is an ongoing discussion with Dunn and Bradstreet to establish an SMEs Ratings Agency of Nigeria (SMERAN) to provide an empirical basis toward analysing the eligibility of SMEs to access credit.”

The minister, who spoke on efforts of the federal government to support MSMEs in the country, also reiterated the ministry’s support to MSMEs development as demonstrated by the MSMEs Survival Fund Initiative, launched in the wake of the COVID-19 pandemic by the government as part of its Nigerian Economic Sustainability Plan.

“The fund comprises the Payroll Support Scheme, which aims at supporting MSMEs in meeting their payroll obligations and safeguard jobs by paying up to N50,000 to a maximum of 10 employees for three months.

“The Artisan and Transport Grant supports self-employed artisans with a one-off payment of N30,000 targeting 333,000 individuals,” he explained.

Furthermore, Adebayo stressed that: “The General MSMEs Grant will provide 100,000 MSMEs with one-off grants of N50,000 each, and the Guaranteed Offtake Scheme aims at engaging approximately 100,000 businesses nationwide to produce items typically manufactured in their locality, targeting 300,000 beneficiaries.

“The scheme supports free registration of companies for 250,000 beneficiaries.”

The minister added that the $1 billion syndicated loan is estimated to save at least 1.3 million jobs across the country while strengthening beneficiary businesses’ growth potential.