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Challenges Persist as Nano Businesses Await Disbursement of N50 Billion Grant from Federal Government
Several nano businesses are yet to receive cash from a N50 billion grant set aside for them by the Federal government, with three associations saying their members have not benefited from the palliative.
Nano businesses, defined as enterprises with one or two workers and an annual turnover of less than N3 million, are struggling to access the funds meant to support them during tough economic conditions. The fund, part of the Presidential N200 billion Intervention Fund, is aimed at supporting one million nano businesses across the 774 local government areas in the country.
Despite the disbursement process starting in March, Femi Egbesola, president of the Association of Small Business Owners, stated that their 27,000 members have not received any payment yet. Similarly, Savior Iche, national president of the Association of Micro Entrepreneurs (AMEN), mentioned that none of their members have received any funds.
Gertrude Aikhimien, chairperson of the Lagos State Chapter of the National Association of Small-Scale Industrialists (NASSI), expressed frustration at the delay in disbursing the funds to their members. She highlighted that despite submitting the names of over a thousand members who own nano businesses, no payments have been made.
Seun Olagunju, spokesperson of the Bank of Industry (BOI), assured that the disbursement process is ongoing and will be concluded by the end of May 2024. However, Terfa Tilley-Gyado, special adviser to the minister of industry, trade, and investment, admitted that less than 20 percent of the disbursements have been completed so far.
The delay in accessing the funds has left many entrepreneurs in dire straits, with some businesses closing down due to the inability to continue operations. The high cost of living in the country, exacerbated by the removal of petrol subsidies and naira devaluation, has further added to the challenges faced by small businesses.
As the government works to complete the disbursement process, small business owners are hopeful that they will soon receive the much-needed financial support to sustain their enterprises. The success of the grant distribution will be crucial in ensuring the survival and growth of nano businesses in Nigeria.
