In keeping to it’s promise to support businesses overcome challenges posed by the COVID-19 pandemic, the Federal Government, is set to commence nationwide implementation of two MSMEs initiatives namely; the MSMEs Survival Fund with the Payrolt support track as the first scheme to rollout (60Billion Naira) and the Guaranteed Offtake Scheme (15Billion Naira).
Both schemes are at the core of the N2.3 trillion stimulus package (also known asNigerian 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.
MSMEs Survival Fund
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.
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% female business participation and special needs participation of 5%.
- Employees of MSMEs. The benefiting companies to meet the following criteria:
- Employees’ company Must be registered in Nigeria under the Corporate Affairs Commission, CAC
- Must have BVN by company CEO
- Must have a staff strength of no less than 3 persons
- Must be owned by a Nigerian.
- Self-employed Individuals in the following categories.
- Service providers in the transportation sector, i.e. Bus drivers, Taxi drivers, Ride share drivers, (Uber, Bolt Taxify etc) and Mechanics.
- Artisans, Electricians Plumbers etc.
Guaranteed Off-take Stimulus Scheme
This 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 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 same as the payroll support.
Target Beneficiaries: Micro and Small businesses registered in Nigeria.