FG Launches Scheme to Support MSMEs Amidst CONVID-19 Pandemic

In line with its promise to support businesses overcome challenges posed by the COVID-19 pandemic, the Federal Government, said it is ready to commence nationwide implementation of two MSMEs initiatives; the MSMEs Survival Fund with the Payroll support track as the first scheme to rollout with  N60Billion Naira and the Guaranteed Offtake Scheme with 15Billion Naira.

According to the federal government, both schemes are at the core of the N2.3 trillion stimulus package also known as the Nigerian Economic Sustainability Plan, NESP being implemented by the Buhari administration to help cushion the impact of the COVID-19 pandemic with a view to boosting the economy by saving existing jobs and creating new job opportunities.

On the N75Billion MSMEs Survival Fund, the federal government said the scheme is a conditional grant to support vulnerable micro and small enterprises in meeting their payroll obligations and safeguard jobs in the MSMEs sector.

It noted that the scheme is estimated to save not less than 1.3million jobs across the country and specifically impact on over 35,000 individuals per state.

Other details include:

Duration: The scheme will be implemented over an initial period of three months in order to provide immediate relief from the economic impact of the pandemic.

Target Beneficiaries: The scheme targets two categories of beneficiaries namely; employees of MSMEs and Self-employed individuals, both schemes have made provision for a 45 percent female business participation and special needs participation of 5 percent

  1. Employees of MSMEs. Benefiting companies to meet the following criteria:
  2. Employees’ company Must be registered in Nigeria under the Corporate Affairs Commission, CAC
  3. Must have BVN by company CEO
  4. Must have a staff strength of no less than 3 persons
  5. Must be owned by a Nigerian.
  6. Self-employed Individuals in the following categories.
  7. Service providers in the transportation sector, i.e. Bus drivers, Taxi drivers, Rideshare drivers, (Uber, Bolt Taxify, etc), and Mechanics.
  8. Artisans, Electricians Plumbers, etc.

Guaranteed Off-take Stimulus Scheme

The government said the scheme will protect and sustain the income of vulnerable Micro and Small Enterprises from the economic disruptions of the COVID-19 pandemic through the implementation of various initiatives aimed at boosting the production capacities of the small businesses as well as the provision of grants.

The main objective of this particular scheme is to boost production capabilities of small businesses with the view to ensuring that they remain in business.

Duration: The duration of implementation will be the same as the payroll support.Target Beneficiaries: Micro and Small businesses registered in Nigeria.

Leave a Reply