The federal government has disbursed N20.7 billion out of the N50 billion budgeted for the trade grant scheme intended for nano businesses.
According to the latest data on the official government website as of June 4, 2024, 414,873 individuals have benefited from the scheme across the 774 local government areas (LGAs).
Each of these individuals has received N50,000 from the federal government for their nano businesses.
In sum, the funds released by the government so far under this initiative amount to N20,743,650,000.
Nairametrics can also confirm that the disbursement is still ongoing as the number of beneficiaries moved from 414,751 on June 1 to 414,873 on June 4, adding not less than a hundred more recipients in three days.
1 million Applicants to receive Grant
While announcing the initiative in December 2023 as part of the presidential palliative package, the federal government said a total of 1 million Nigerians will benefit from it.
The Minister of Industry, Trade and Investment, Doris Uzoka-Anite, also said in a statement that even though 3.6 million Nigerians applied for the programme, the initiative only covers 1 million eligible applicants.
She further explained that disbursements are not determined by specific criteria but are processed in the order of application verification.
According to the minister, the objective is to distribute funds to an estimated 1,290 beneficiaries per local government area (LGA) across the country, with the overall goal of reaching one million recipients.
“Disbursements aren’t based on any specific criteria but on the order in which applications are verified. The goal is to reach an estimated 1290 beneficiaries per LGA across the country totaling 1 million.
“Of over 3.6 million applicants, only 1 million will receive the grant. This is the threshold based on the amount budgeted for nano businesses,” Uzoka-Anite added.
This implies that over 500,000 eligible applicants are still yet to receive the grant for their nano businesses.
Target Sectors for the Scheme
The following businesses are eligible to apply for the scheme:
Traders: Single retail marketers, corner shop owners, petty traders, and market men and women in open markets.
Food Services: Food and vegetable vendors.
ICT: Business centre operators, battery chargers, recharge card vendors, and call centre agents.
Transportation: Wheelbarrow pushers and independent dispatch riders.
Creatives: Makeup artists, fashion designers, and dry cleaners.
Artisans: Vulcanizers, shoemakers, painters, and repairers.
The amount of funds budgeted for the scheme is N50 billion.
Backstory
In December 2023, the Federal Government introduced the Presidential Conditional Grant Scheme (PCGS) as part of the Presidential Palliatives Programme, aiming to support nano businesses.
- Scheduled to start on March 9, 2024, the Trade Grant Scheme provides non-repayable financial grants of N50,000 to eligible small business owners in various sectors, including trading, food services, ICT, transportation, creative industries, and artisans.
- The PCGS aims to allocate 70% of the grants to women and youths, 10% to individuals with disabilities, and 5% to senior citizens, leaving 15% for other demographics.
- The Minister of Industry, Trade and Investment, Doris Uzoka-Anite, said that each qualifying recipient would receive a N50,000 grant, directly deposited into their bank accounts. The objective is to reach one million small businesses across the 774 LGAs and six council areas in the Federal Capital Territory (FCT).
- Highlighting the extensive impact of the scheme, Uzoka-Anite emphasized its potential to benefit communities nationwide, targeting 1,000,000 beneficiaries.