The Federal Government of Nigeria under the supervision of the Federal Ministry of Industry, Trade and Investment, is rolling out two initiatives – the Presidential Conditional Grant Programme & the Presidential Palliative Loan Programme.

The minister of Industry, Trade and Investment, said the programmes aim to alleviate the effects of the fuel subsidy removal.

Nano businesses will receive N500,000 grant, while MSMEs and manufacturers will access loans up to N1 million and N1 billion respectively.

The target beneficiaries are 70% women and youth, 10% people with disabilities, and 5% senior citizens, while the remaining 15% is distributed to other demographics.

This scheme will run for the first time (no later than 31 December 2031) in 10 years, depending on the project’s complexity.

Projects funded under the scheme will be monitored by independent monitors set up jointly by CBN and MFIs.

Who Can Apply?

Businesses that fall into the six categories below can apply.

. Traders
2. Food services
3. ICT
4. Transportation
5. Creatives (makeup artists, fashion designers and dry cleaners.)
6. Artisans (vulcanizers, shoemakers, painters, repairers).

Age requirement

To be eligible for loans in Nigeria, borrowers must be above the minimum age of 18 years. Mortgage loan lenders, however, often increase this minimum age to 21.

This is because mortgage loans often involve huge amounts of money, and lenders in Nigeria always prefer borrowers above the minimum age as it indicates financial experience.

To this end, to be eligible for a mortgage loan in Nigeria, borrowers must be between the age of 21 and 60. Age requirements can be flexible depending on the financial portfolio of the borrower.

Income requirement

The income requirement is one of the most vital and least flexible eligibility requirements for mortgage loans.

Without a steady source of income, no lender will offer a borrower a mortgage loan. This is because mortgage loans often require huge amounts, and a steady source of income is a strong indicator that a borrower will be able to repay the loan therefore indicating eligibility.

A borrower’s income must be able to comfortably handle the monthly repayments of the required mortgage loan or else they will not be eligible for the mortgage loan. To this end, they must be able to show sufficient evidence including but not limited to bank account statements or pay slips.

It might be important to note that mortgage loan lenders in Nigeria might require borrowers to have a steady income for at least two years before they can be eligible to take a mortgage loan.

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Credit history

A borrower must have a credit history that clearly shows that they will be able to repay the mortgage loan that they require from the lender or else they will not be eligible for the loan.

Lenders use credit histories, and most particularly credit scores to determine if the potential borrower is creditworthy enough to receive a mortgage loan. You must have at least a credit score of 650 (out of a possible 850) to qualify for a mortgage loan in Nigeria.

Some lenders might be willing to work with borrowers who have lower credit scores but at the cost of higher interest rates and larger down payments.

Documents for personal identification

This includes:

Valid government-issued identification card (driver’s license, national ID card, voters card, or international passport)

Grant Eligibility Criteria

1. Own a nano business.
2. Operate a business with progressive economic potential, and desire to grow the business.
3. Be willing to engage at least one additional staff member if turnover increases
4. Be willing to provide proof of residential/business address in the Local Government Area
Provide relevant personal and bank account information, including Bank Verification
(BVN) for verification of identity
5. Meet the application submission deadline.

Eligible applicants should visit the website fedgrantandloan.gov.ng and click ‘apply for grant.