Learn how to apply for the FG presidential conditional grant. Use the grant to support your nano business or SME. Download the grant application checklist to stay organised.
The economic crisis has left many micro-enterprises cash-strapped and struggling to stay afloat.
To provide relief, the Federal Government recently launched two stimulus packages: a N50 billion Presidential Conditional Grant Scheme and another N75 billion Presidential Palliative Fund – targeting nano/micro businesses nationwide.
The Ministry of Industry, Trade and Investment, Led by Minister Dr. Nkiruka Nzoka-Anite, aims to use these initiatives to stimulate grassroots economies and protect the livelihoods of vulnerable groups (youth, women, elderly, and disabled entrepreneurs) impacted by recent policy changes.
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In this guide, you will learn everything eligible micro-business owners need to know to benefit from these funding opportunities. Keep reading to find out.
Table of Contents
- The Federal Government has launched a N50 billion Conditional Grant Scheme and a N75 billion Palliative Loan Program to support nano, micro, and small enterprises
- The grant scheme will provide N50,000 one-time payment to 1 million nano business owners across Nigeria
- The loan program offers discounted interest rates of 9% to MSME manufacturers and SMEs
- Nano enterprises like roadside traders and vendors are eligible for the N50k grant
- Manufacturers can access up to N1 billion in loans under the program
- Online registration opened on October 10, 2023, via the grant portal
- Grants can be used for working capital needs like inventory purchase
- How to Apply for the Tony Elumelu Entrepreneurship Programme
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What’s this N50,000 FG Conditional Grant?
The N50,000 grant for nano or micro-enterprises is a key component of the government’s plan to alleviate poverty and drive growth by supporting small informal businesses at the grassroots level.
Specifically, this scheme seeks to disburse one-time unconditional cash transfers of N50,000 each to empower 1 million owners of small roadside petty trades, open market stalls, mobile vendors, and other nano enterprises in Nigeria.
Unlike regular MSME loans, this N50 billion grant programme requires no repayment, complex documentation, or existing business registration. The direct cash transfers will enable vulnerable Nigerians operating on micro, subsistent levels to buffer against income and enable them to use it to grow their business.
The grant can be used to expand their liquidity to immediately invest more into working capital, logistics, or supplies. By directly channeling capital into the hands of nano-entrepreneurs within deprived communities, this grant format helps multiply grassroots opportunities.
What About the Presidential Palliative Loan Programme for MSMEs?
To further accelerate post-pandemic economic recovery, the Federal Government has introduced the N75 billion Presidential Palliative Loan Programme tailored for MSME manufacturers and SMEs struggling with high input costs and working capital constraints.
This initiative provides subsidized credit access, unlocking affordable financing so vulnerable firms can bridge income shortfalls, refinance debts, or make productivity-enhancing investments to safeguard operations.
Manufacturing MSMEs and SMEs registered across all sectors can apply for loans up to N1 million and N1 billion respectively at discounted 9% interest rates. Disbursals come with flexible 1 to 5-year repayment schedules calibrated to business cash flows – 1 year for working capital, and 5 years for upgrading machinery/equipment.
The initiative aims to spur MSMEs to further develop their offerings, capacities, and output volumes. In turn, this strengthens indigenous value chains, improves backward integration, improves import substitution, and catalyzes wider job creation.
Download Free FG Grant Application Checklist
Use this federal government grant application checklist to increase your odds of getting funding for your nano or small business. Follow it to stay on track and make sure you don’t miss any steps.
Eligibility Criteria: Who Qualifies for The N50,000 Grant?
When you log on to the application portal, you will only find a button that says ‘Apply for a grant’; there’s no other button for a loan application, so in the meantime, it seems they’re yet to roll out the loan portal.
To apply for the N50,000 presidential conditional grant or the loan, nano business owners, MSMEs, and manufacturers should meet the eligibility criteria outlined below:
Location and Identity
You must be able to provide valid proof connecting your business operations to any of the 774 local government areas within Nigeria. Relevant address verification documents include:
- Recent utility bills in your name
- Rent/tenancy agreements
- Letter from community development association.
You must currently own and run a nano business venture categorized by less than 10 employees and asset holdings below N5 million (excluding land/property).
The program targets enterprises that display a drive to progress their operations, capacities, and income generation. Applicants should showcase how they intend to constructively utilize the grant.
You must agree to engage at least 1 extra hired staff if business turnover expands after receiving funding. This stimulates job creation.
Applicants must furnish accurate information on their nano enterprise including:
- Bank Verification Number (BVN)
- Personal information
- Bank information
You may also be required to provide the following information as is historically required by such grants:
- Type of business/trade
- Number of employees
- Years in operation
- Estimated annual turnover
You may also keep any supporting documents like purchase receipts, inventory lists, or photos of business premises handy should they request them. These eligibility prerequisites help confirm your nanobusiness as an active one within a recognized LGA nationwide to receive the one-time N50,000 stimulus grant.
Programme Scope and Objectives
This N50 billion grant scheme aims to:
- Increase the chances of business survival for nano enterprises
- Protect the livelihoods and jobs of low-income, self-employed Nigerians
- Empower marginalized groups like youth and women who rely on micro ventures
- Stimulate grassroots economic activity and demand nationwide
- Cushion nano businesses against the current economic crunch
The federal government intends to collaborate with state counterparts, ministers, NASMEs, senators, and representatives, using predetermined selection criteria to identify and shortlist beneficiaries.
However, the program explicitly targets the most vulnerable and underserved demographics including:
- 70% grants reserved for women and youth-owned nano enterprises
- 10% allocation for applicants with disabilities
- 5% grants for businesses run by elderly men and women
- The remaining 15% distributed across other applicant groups
Nano Business Categories Eligible For Funding
The N50,000 presidential grant aims to uplift nano entrepreneurs across everyday trades and services keeping grassroots economies running. If your small business falls under the following categories, you can apply:
- Retail & Trade: Roadside petty traders, open market vendors, mobile hawkers, wheelbarrow pushers
- Food & Agro: Farm produce sellers, snack/meal prep vendors, raw material suppliers
- Digital Services: Recharge card distributors, business center operators, phone boot technicians
- Logistics & Transport: Independent dispatch riders, tricycle/motorcycle couriers, delivery personnel
- Creative Industry: Fashion designers, tailors, hair stylists, local beauticians, shoemakers
- Informal Technical Services: Mechanics, vulcanizers, electricians, repair work technicians
- Hospitality: Roadside tea/food stalls, entry-level guest houses, street food clusters
Depending on your eligibility, the scheme provides:
- N50,000 flat, one-time grants to 1 million pre-approved nano entrepreneurs
- N75 billion made available as loans for MSME manufacturers and SMEs at subsidized 5% interest rates with flexible repayments
Step-by-Step Instructions On Applying
Follow this step-by-step guide to submit your application smoothly:
- Visit the application portal to begin your registration.
- Click on the “Apply For Grant” button to register
- On the next page, fill out the fields appropriately with your correct name, email address, and phone number.
- After filling in the details, click on ‘Submit Request’.
Timelines To Apply Before Deadline
- When Does the Application Start? Online registration commenced on October 10, 2023
- What is the Application Deadline? The application deadline according to information on the website is December 18, 2023.
- When Will Grants be Disbursed? Approved payouts to beneficiaries will begin in December 2023.
Businesses are encouraged to apply ASAP before allocated slots and funds run out.
Can Multiple Nano Enterprises From One Family Apply?
Yes, separate applications can be submitted for each eligible nano business from the same family that meets the stated criteria. However, no individual can receive grants for multiple businesses under their name.
Is Prior Business/Tax Registration Mandatory?
No formal business/tax registration is required currently. However, you need to provide a valid ID and address proof to confirm the location and identity of applicants.
Can the N50,000 Grants Be Used as Working Capital to Buy Inventory?
Yes, the N50,000 unconditional cash payments can be flexibly used for any legitimate purpose that supports beneficiaries’ business operations, growth, and sustainability – including working capital expenses.
What Does It Mean to Have a Business With ‘Progressive Economic Potential’?
This refers to nano enterprises that have practical plans to constructively expand their customer base, offerings, productivity, or profits over time using the grant. Essentially firms focused on realistic self-upliftment.
Do I Need to Have a Registered Business Name to Qualify for This Opportunity?
No, informal unregistered business names can also apply. The beneficiary is expected to formally register shortly after receiving the grant.
Should I Apply Before the Deadline?
This N50,000 no-interest cash injection can provide vital stability and stimulus for nano enterprises struggling to stay profitable in the present challenging economy. Women, youth, and marginalized community members especially stand to benefit.
Wrapping It Up
The initiative by the federal government of Nigeria to bolster micro, MSME manufacturers, and SME enterprises with much-needed funds is commendable.
As long as you’re eligible, you should apply before the deadline as it is a completely free registration, so you, a small business owner in Nigeria, have nothing to lose.
All it takes is 10 minutes to submit your application for the chance to secure N50,000 in unconditional business funding support. So apply ASAP before the minutes run out!