The Federal Government has announced a N650 billion facility to provide lower-cost short-term financing to youth-owned businesses, manufacturers, and Micro, Small, and Medium Enterprises (MSMEs) nationwide.
This initiative is part of the economic measures planned by the 31-member Presidential Economic Coordination Council (PECC), which President Bola Tinubu inaugurated on Thursday, alongside launching the Economic Stabilization Programme to drive economic transformation.
The announcement was made in an official statement by Ajuri Ngelale, Special Adviser to President Tinubu on Media and Publicity, on July 4, 2024.
“A six hundred and fifty billion naira (N650 billion) facility will provide lower-cost short-term facilities to youth-owned businesses, manufacturers and MSMEs across various industries,” the statement read in part.
The statement provided further details, noting that the N650 billion facility will benefit eligible youth-owned businesses, manufacturers, and MSMEs in the food processing, pharmaceutical, agriculture, and wholesale and retail trade industries.
Additionally, it explained that financing will be determined based on current and future receivables, company ratings, and market demand for products.
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In addition to the N650 billion support for youth-owned businesses in select industries, the Economic Stabilization Programme aims to bolster new and existing youth-owned enterprises across all 36 states. This initiative targets the creation of 7,400 MSMEs within the next 6 to 12 months, providing substantial support for young entrepreneurs nationwide.
Other initiatives under the Economic Stabilization Programme include the Sub-national Matching Fund, which involves the Grow Nigeria Development Fund offering a single-digit interest rate loan portfolio through the Bank of Industry, along with a matching fund agreement with sub-national governments to grow MSMEs.
Additionally, the programme will expand the Bank of Industry’s Rural Development Programme, supporting rural economies by developing 300 new MSMEs in each state, including the Federal Capital Territory (Abuja), resulting in 11,100 new rural-based MSMEs across the Federation.
The statement further noted that these initiatives are designed to improve access to finance for MSMEs and, in the process, create 4.7 million direct and indirect jobs over the next 6 to 12 months.
Members of the Presidential Economic Coordination Council (PECC)
The Presidential Economic Coordination Council (PECC), chaired by President Bola Tinubu, comprises 31 members, including key political leaders such as the Senate President, the Speaker of the House of Representatives, the Chairman of the Nigeria Governors Forum, twelve ministers, and the Governor of the Central Bank of Nigeria.
Prominent figures from the Organized Private Sector also serve on the council, including Alhaji Aliko Dangote, Mr. Tony Elumelu, Alhaji Abdul Samad Rabiu, Ms. Amina Maina, Mr. Segun Ajayi-Kadir, Dr. Funke Opeke, Dr. Doyin Salami, Mr. Patrick Okigbo, Mr. Kola Adesina, Mr. Segun Agbaje, Mr. Chidi Ajaere, Mr. Abdulkadir Aliu, and Mr. Rasheed Sarumi.