Initial disbursements of N50,000 have been provided to over 100,000 nano-businesses nationwide through the Presidential Conditional Grant Scheme, also known as the Trade Grants Scheme, according to the Minister of Industry, Trade, and Investment, Doris Uzoka-Anite.
In an exclusive conversation on Friday, the minister, speaking through her aide Terfa Gyado, disclosed that nano businesses are defined as enterprises with one or two employees and an annual turnover of less than N3 million, as per the Small and Medium Enterprises Development Agency of Nigeria.
Confirming the commencement of disbursements a few weeks ago, the minister stated that each Local Government has seen distributions to 1,291 nano businesses.
The Federal Government unveiled the Presidential Conditional Grant Scheme in December 2023, part of the Presidential Palliatives Programme aimed at supporting and empowering nano businesses through a N200 billion fund disbursed via the Bank of Industry.
The Trade Grant Scheme, initially scheduled to launch on March 9, 2024, is offering financial grants without repayment obligations to eligible small business owners in various sectors such as trading, food services, ICT, transportation, creative arts, and artisans.
In an official statement, the minister announced the commencement of distribution on Wednesday, highlighting that verified applicants will continue to receive grants in subsequent phases as the ministry gathers verified data from the states.
According to Aniete, the disbursement process has already reached approximately 100,000 small businesses, with each eligible applicant receiving N50,000 based on the criteria of owning a nano business and successful verification using their Bank Verification Number and National Identification Number.
Regarding the target of reaching one million small businesses across the 774 Local Governments and six council areas in the Federal Capital Territory, Aniete mentioned, “The aim is for one million nano businesses nationwide, translating to 1,291 nano businesses per local government.”
Continuing, the minister emphasized that disbursements are ongoing and recipients receive funds directly into their accounts post verification. The focus remains on reaching the set target of one million businesses while awaiting data from all states in the country.
This milestone follows President Tinubu’s announcement eight months ago regarding grants for manufacturers and small businesses, with recent requirements including submission of National Identification Numbers to qualify for the grant aimed at alleviating the impact of recent economic reforms on businesses in the nation.