The Federal Government is giving out business loans up to ₦1 billion. The interest rate is 9%. This is for all types of businesses, including manufacturers.
Why This Loan is Offered
The Minister of Finance, Wale Edun, said the government knows it is hard for business owners to get money at good rates. President Bola Tinubu’s team wants to help with this.
Loan Amounts
- Small businesses can get up to ₦1 million.
- Big businesses can get up to ₦1 billion.
Lower Interest Rates
This loan’s interest rate is lower than the Central Bank’s rate of 26.25%.
Focus Areas
The government also wants to:
- Fix food insecurity.
- Improve nutrition.
- Boost food production.
Help for Small Businesses
Edun said they are also helping small businesses and very tiny businesses with grants.
How the Loan Works
They will use a high standard process to make sure the right people get the money. They will identify people using biometric data and pay them digitally. This is to make sure everything is clear and easy to track.
Loan Details
- Medium businesses get loans at 9% interest.
- Small businesses get up to ₦1 million.
- Big businesses get up to ₦1 billion at 9% interest.
This will help businesses grow, create jobs, and produce more goods. This can also help reduce inflation.
Future of Food Prices
The minister said food prices will drop soon. The government has set aside special funds to help farmers grow more food.
Current Inflation
- Inflation is high at 33.65%.
- Food inflation is at 40.5%.
But, inflation is slowly going down each month. As more food is harvested during the dry and wet seasons, prices are expected to drop. This will help lower inflation even more.
Benefits of the Loan
| Benefit | Explanation |
|---|---|
| Low-interest rate | Only 9%, much lower than the Central Bank’s 26.25% |
| High loan amounts | Up to ₦1 billion for big businesses |
| Support for small businesses | Up to ₦1 million loans and grants available |
| Digital and clear process | Biometric identification and digital payment for transparency |
Summary
This loan from the Federal Government offers businesses a chance to grow with low-interest rates. The focus is on helping both small and large businesses, reducing food prices, and fighting inflation