The Federal Government has unveiled a N650 billion initiative to provide lower-cost short-term financing to youth-owned businesses, manufacturers, and Micro, Small, and Medium Enterprises (MSMEs) nationwide. This initiative, part of the Economic Stabilization Programme, was launched by President Bola Tinubu’s administration, with further details provided by Ajuri Ngelale, Special Adviser to the President on Media and Publicity.
Key Components of the Initiative
- N650 Billion Facility:
– The facility is designed to offer lower-cost short-term financing to eligible youth-owned businesses, manufacturers, and MSMEs in key industries, including food processing, pharmaceuticals, agriculture, and wholesale and retail trade.
– Financing will be based on current and future receivables, company ratings, and market demand for products.
- Economic Stabilization Programme:
– This broader program aims to bolster new and existing youth-owned enterprises across all 36 states, with a target of creating 7,400 MSMEs within the next 6 to 12 months.
– A Sub-national Matching Fund will involve the Grow Nigeria Development Fund, offering single-digit interest rate loans through the Bank of Industry (BOI), in collaboration with sub-national governments.
– The BOI’s Rural Development Programme will be expanded to support 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.
- Job Creation:
– These initiatives are projected to improve access to finance for MSMEs and create 4.7 million direct and indirect jobs over the next 6 to 12 months.
Presidential Economic Coordination Council (PECC)
The 31-member PECC, chaired by President Bola Tinubu, includes key political leaders and prominent figures from the Organized Private Sector:
– Political Leaders:
– Senate President
– Speaker of the House of Representatives
– Chairman of the Nigeria Governors Forum
– Twelve ministers
– Governor of the Central Bank of Nigeria
– Private Sector Representatives:
– 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
– Mr. Rasheed Sarumi
The N650 billion facility and the broader Economic Stabilization Programme represent significant steps in fostering economic transformation, supporting youth and MSMEs, and driving job creation in Nigeria.
