The economic recovery from the COVID-19 crisis in Nigeria hinges on the survival of SMEs, which employs a large fraction of the region’s workforce. The Federal Government is responding with economic stimulus packages, including liquidity or methods to prop up demand for SMEs.
As a result of the ravaging pandemic, Small and Medium Enterprises SMEs are currently in a dip as business activities were grounded to a halt during the lockdown which lasted for over a month. The plunge in exchange of goods and services required that some employees be laid off and others sent on furlough. SMEs account for two-thirds of global employment and half of global GDP. A failure to protect them could put the entire global economy at risk.
PUNCH reports that, The Federal Government on Thursday flagged off two schemes to financially support about 1.7 million micro, small and medium enterprises across the country with N75bn.
At a briefing on the flag-off of the National MSME Survival Fund and the Guaranteed Off-take Stimulus Schemes under the Nigeria Economic Sustainability Plan, the Minister of State for Industry, Trade and Investment, Mariam Katagum, said the schemes would impact positively on businesses.
The Economic Sustainability Plan was approved by the Federal Executive Council on June 24, 2020 following its initiation by the Economic Sustainability Committee that was established by the President, Major General Muhammadu Buhari (retd.), on March 30.
The committee, which is chaired by the Vice President, Prof. Yemi Osinbajo, comprises several ministers and the Group Managing Director of the Nigerian National Petroleum Corporation as well as the Governor of the Central Bank of Nigeria.
In her address at the briefing, Katagum stated that in keeping to its promise to support businesses overcome the challenges posed by the COVID-19 pandemic, the Federal Government was set to commence nationwide implementation of the two MSME initiatives.
Katagum said the N60bn MSME Survival Fund and the Payroll Support schemes would be rolled out first, adding that the N15bn Guaranteed Off-take Scheme would then follow.
The Special Assistant to the President on MSMEs in the Office of the Vice President, Tola Johnson, explained that the survival fund was a conditional grant to support vulnerable MSMEs in meeting their payroll obligations and safeguard jobs from the shock of the COVID-19 pandemic.
He said the scheme was estimated to save about 1.3 million jobs across the country, while targeting an average of 35,000 individuals per state.
He urged interested MSMEs to visit the trade and investment ministry or the websites for the schemes to learn more about the initiatives.
Source: https://punchng.com/fg-inaugurates-n75bn-smes-covid-19-stimulus-schemes/