FG speaks on solution to hardship, 50k grant for small businesses

• The federal government's ambitious goal to put population welfare first while reviving the economy has been laid forth by Wale Edun
• The finance minister reiterated the government's commitment to guaranteeing food security in a recent TV appearance
• He stated that the goal of the President's pledge and this proactive strategy is to improve food accessibility and reduce living expenses

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

Wale Edun, the coordinating minister of the economy and minister of finance, has outlined the ambitious aim of the federal government to prioritise the welfare of its population while revitalising the economy.

FG is encouraging imports in addition to using food inventories to lower food prices. Photo Credit: Supersizer
Source: Getty Images

In a recent TV interview, Edun reaffirmed the government's commitment to ensuring food security. He said that the goal is to make wholesome food inexpensive and available to every Nigerian.

He disclosed in a Daily Sun report that in order to bring down food prices, the administration is not just using food stocks but also promoting imports.

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He claims that the President's commitment and this proactive approach are intended to lower living expenses and increase food accessibility.

The minister clarified that efforts by the government to increase food production are essential to managing inflation.

“When inflation comes down, the exchange rate will stabilise. Interest rates will come down and the economy will have a chance. People will have a chance at reasonable rates to invest in various sectors of the economy, increase productivity, grow the economy and create jobs which is the key to reducing poverty.” “As food prices decrease, inflation is expected to drop, which will stabilise the exchange rate and lower interest rates. This environment will encourage investments, boost productivity, and create jobs—essential steps in reducing poverty.”

Funding initiatives

Additionally, Edun outlined important funding initiatives meant to assist companies of all sizes. One noteworthy program is a $800 million loan with a 40-year tenure and an interest rate of under one percent provided by the International Development Association (IDA) of the World Bank.

This soft loan, combined with extra federal budgetary provisions, is the most cost-effective source of funding.

He added that the government has launched several financial assistance programs for businesses. This means that small and medium-sized businesses can access up to N1 million at a 9% annual lending rate, while nano enterprises can apply for grants of N50,000. Under comparable conditions, larger medium-sized businesses can obtain up to N1 billion.

To further reduce operating expenses, import exemptions and fiscal policies are being introduced, such as the removal of withholding taxes for small enterprises and the manufacturing sector.

FG invites Nigerians to apply for grants

Legit.ng reported that Doris Uzoka-Anite, Nigeria's Minister of Industry, Trade, and Investment has announced that the federal government will begin disbursement of N150 billion in loans to micro, small, and medium enterprises (MSMEs) by the end of July 2024.

She also revealed that Nigerians still have opportunities to apply for the Presidential Conditional Grant Scheme.

According to her, the federal government has already disbursed 60% of the expected one million beneficiaries across Nigeria's 774 local government areas without repayment obligations.

Source: Legit.ng