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Federal government to Distribute N10bn Trader Moni loan in 2020

The Nigeria government has made plans to distribute N10 billion as trader Moni loan to all petty traders and artisans in2020.

Under the trader Moni micro credit scheme, the F.G, through the bank of industry (BOI) has provides an interest free loan to all petty traders and artisan. The trader Moni loan ranges from N10,000 to N100,000 per individual.
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The loan is termed to be part of the social intervention programmes under the President Muhammadu Buhari Administration.

According to the 2020 Bill that was signed into law by the president on Monday, N10 billion has was been allocated to BOI as Grants to BOI to help support low interest loan to SMEs'.

Reports also revealed that the same amount was allocated for the same purpose in the 2019 Appropriation Bill.

A BOI Officials who confirmed to Vanguard that the bank demoes not receive any other money from the Federal government apart from the fund received for the disbursement as Trader Moni.

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The first loan to an individual under the Trader Moni guidelines is N10,000. Upon payment of the first loan, the individual qualifies for a higher amount. The maximum amount allowed is N100,000.

While the first loan of N10, 000 can be collected without Biometric Verification Number (BVN) or bank account, the borrower must have a BVN and a bank account for the next set of loans.

Recalled that the Federal Government said it will increase the number of beneficiaries to five million from 2.5 million annually.

Statistics from the Trader Moni Command Center showed that  N19.6 billion had been disbursed to   1.95 million Nigerians under the programme as at the end of October. The data also showed that 4.6 million people have been enumerated out of which 2.57 million have been verified.

Meanwhile, the Federal Government also plans to spend    N2 billion for the operations of the Treasury Single Account (TSA) operations.

This however represents 50 percent decline when compared to the N4 billion allocated for same purpose in the 2019 Appropriation Bill (Budget 2019).

Vanguard investigation revealed that the N2 billion allocated will mostly be spent to transaction fees to electronic payment service providers.

The FG initially bears the cost of all TSA payment and collection transactions. But in November 2018, it transferred the cost of revenue collections to payers, while it continues to bear the cost of payments transactions.

Consequently, the FG bears the cost of transactions made to its vendors, which is N100 per transaction. But for payments to government (Government Collections), the payer settles the transaction charge.

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