FG to ensure implementation economic sustainability plan on SMEs fund – Adebayo
The Minister of Industry, Trade and Investment Otumba Richard Adeniyi Adebayo CON said that the Federal Government, through the Federal Ministry of Industry Trade and Investment is committed to the pursuit of implementing the Nigeria Economic Sustainability Plan MSME Fund (NESP-F), designed to revitalize and strengthen MSMEs in Nigeria following the COVID-19 Pandemic and its economic impact on Nigerian businesses and livelihood.
The Minister disclosed this at the Opening Ceremony of the Victual/ Physical Council Session of the 12th Meeting of the National Council on Industry, Trade and Investment with the theme: ‘’Revitalization of the Industry, Trade and Investment Sector in Nigeria in the Post Corona Virus (COVID -19) Pandemic Era’’ in Abuja.
Adebayo further explained that the Survival Fund Scheme, launched by the Federal Government on the 21st September 2020 is a component of the Economic Sustainability Plan (ESP). The scheme is a grant to support vulnerable Micro, Small and Medium Enterprises (MSMEs), in meeting their payroll obligations and safeguard jobs within the MSME space from the shock of the Covid-19 Pandemic.
He said the Steering Committee was set up to implement the programme and to work closely with the focal desks Officers appointed by the Governors in the States in the implementation of the Scheme. The five Schemes under the programme to be implemented across the country for a period of three months are as follows: Payroll support: It is designed to support 500,000 vulnerable MSMEs in meeting payroll obligations of between N30,000 to N50,000 per employee over 3 months, Formalization support: It is designed to provide free CAC Business name registration for 250,000 new businesses, Artisan/Transport Support: This Scheme will provide 333,000 artisans and transport business operators with a N30,000 grant to reduce the effects of income loss, General Grant: This is to support the survival of 100,000 MSME businesses most affected by the Covid-19 Pandemic as well as Guaranteed Offtake Scheme: It is designed for bulk purchase of products from MSMEs to protect jobs and livelihood.
He explained that Under the programme, three states (Lagos, Kano and Abia) were given more allocation in consideration of the high rate of MSMEs available. 45% was allotted to the female gender and 5% for the physically challenged group. The registration is free online but the applicant must possessbank account with BVN and CAC registration to be pre-qualified.
“Information Technology (IT) was adopted to ensure proper accountability, transparency and traceability of funds disbursed. The Federal character principle was totally considered and applied, based on the spread of MSMEs in the country” He added.
Adebayo said the MSME Guaranteed Off-take Stimulus Scheme on its part is another Government support measure to assist micro and small businesses. The Scheme is to protect and sustain income of vulnerable micro and small businesses and enterprises from the shock of the Covid-19 Pandemic by guaranteeing offtake of items produced by these businesses, while small businesses that do not meet the requirement for the production and supply will be eligible tosoft grants. The project will procure products from micro and small businesses across the States and FCT for distribution and use by the Federal Government and State Governments and the private sector. The Scheme is targeting micro and small businesses registered in Nigeria, by producing products with a value of at least N100,000 per business entity.
“Government, through the Bank of Industry, is implementing the Youth Entrepreneurship Support (YES) Programme, designed to address the challenge of youth unemployment in Nigeria. The Scheme builds on the capacity of the youths and funds their business ideas for self-reliance” Minister said.
“Distinguished Members, Ladies and Gentlemen, may I seize this opportunity to encourage the States to continue to support the Federal Government in all its initiatives and to also encourage them to come up with pragmatic measures towards revitalizing the Industry, Trade and Investment Sectors in their respective domains for us to move our beloved Country to the next level in the Post Covid-19 Era. It is therefore, my sincere belief that this 12th Meeting of the National Council will come up with far reaching resolutions that will reposition this sector for accelerated national economic growth and development” Adebayo added.
In her vote of thanks, the Minister of State, Amb. Mariam Yalwaji Katagum appreciated the vision and commitment of President Muhammadu Buhari, GCFR, towards the diversification and deepening of the nation’s economy, by tapping into the existing potentials in the Industry, Trade and Investment Sector, for rapid job creation and sustained wealth generation.
The Minister of State also commended representatives of government Agencies and members of the Organized Private Sector (OPS) such as the Manufacturers Association of Nigeria (MAN); the Federation of Agricultural Commodity Associations of Nigeria (FACAN); the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA); the United Nations Industrial Development Organization (UNIDO) and other developmental partners who had contributed in several ways in ensuring the success of the meeting.
Amb. Katagum who is also the Chairperson of the Steering Committee of the MSME Survival Fund thanked all State Governments for their support and co-operation particularly in nominating Focal Persons to work with the teams on MSMEs Survival Fund in the States.
