₦75bn Manufacturing & MSME Scheme: FG Disburses ₦16.1bn to 22 Manufacturers in First Batch

The Federal Government has started releasing money under the ₦75 billion manufacturing fund managed by the Bank of Industry (BoI). 

The loan carries a 9 percent annual interest rate and is meant to help factories keep production going, upgrade equipment, and move goods to market more efficiently.

What was promised at launch

The government designed the manufacturing window so that 75 companies could access up to ₦1 billion each. A parallel ₦75 billion window for MSMEs was also created to support 75,000 small businesses with ₦1 million each.

BoI has paid out ₦16.1 billion to 22 manufacturing companies in the first tranche. Some industry reports listed as many as 140 manufacturers as potential beneficiaries, but confirmed disbursements to date cover 22 firms.

The first payments arrived about 14 months after the original announcement due to screening and paperwork. Members of the Manufacturers Association of Nigeria are among those funded.

Companies can use the loans to buy raw materials, repair or replace key machines, and expand their distribution networks. The funding also provides working-capital relief so firms can cope with energy costs, logistics bills, and inputs that depend on foreign exchange. The aim is to keep lines running, protect jobs, and shorten delivery times.

How the MSME window fits in

Alongside the manufacturing fund, the MSME window sets aside another ₦75 billion for micro, small, and medium enterprises. The plan is to reach 75,000 businesses with ₦1 million loans each through BoI channels. Authorities say disbursement has begun after earlier delays linked to setup and verification.

Money moving on time shows the scheme is shifting from policy to action. If tranches continue quickly and predictably, factories can raise capacity use, rebuild stocks, and improve on-time deliveries.

If releases stall, firms struggle to plan, and any gains in output and jobs fade. Clear beneficiary lists, sector breakdowns, and regular progress updates will build public trust.

Applications usually start online, supported by a business plan, recent financial statements, Corporate Affairs Commission and tax documents, and collateral where required. Approved firms receive a term sheet that states the amount, tenure, interest, and repayment schedule.

MSMEs can apply directly through BoI or via partner microfinance and state programmes linked to the federal window.

Source: BusinessElitesAfrica | Read the Full Story…