In an effort to mitigate the impact of petrol subsidy removal and naira devaluation on the manufacturing sector, President Bola Tinubu has unveiled a groundbreaking initiative to provide financial support to manufacturers.
In his broadcast on Monday, he announced that his administration is set to allocate a sum of N75 billion to bolster the growth and sustainability of 75 selected enterprises with immense potential.
Addressing the nation with determination, President Tinubu outlined the strategic objectives of the initiative, emphasizing its role in fortifying the manufacturing sector and promoting economic expansion.
Through this initiative, the government seeks to not only safeguard businesses from the challenges posed by recent economic changes but also to facilitate the creation of more rewarding employment opportunities for the workforce.
“We are taking decisive steps to strengthen the manufacturing sector, increase its capacity to expand, and create good-paying jobs,” President Tinubu proclaimed.
The commitment of N75 billion over the period of July 2023 to March 2024 is expected to pave the way for sustainable economic growth and drive essential structural transformations within the industry.
The President detailed the terms and conditions that manufacturers can expect when accessing the credit support.
The selected 75 manufacturing enterprises will have access to one billion naira credit at a favorable annual interest rate of nine percent.
In a bid to ensure the long-term viability of these businesses, repayment periods of up to 60 months will be granted for loans intended for capital investments. Meanwhile, working capital loans will have a repayment period of 12 months.
Stakeholders from various sectors have praised the President’s proactive approach to driving economic growth through strategic investments. The credit program for manufacturers is seen as a crucial step towards galvanizing the private sector, fostering innovation, and boosting the nation’s overall competitiveness in the global marketplace.
The President’s announcement has ignited a sense of optimism among manufacturers and aspiring entrepreneurs, signaling a new era of government-industry collaboration aimed at harnessing Nigeria’s vast potential and securing a brighter future for all citizens.
As the N75 billion initiative takes shape, all eyes will be on its implementation and impact on the manufacturing landscape. If successful, this groundbreaking program could serve as a blueprint for other sectors, further propelling Nigeria’s journey towards becoming an economic powerhouse and a beacon of prosperity in the African continent.