The Federal Government has launched new details on the Micro Small and Medium Enterprises (MSMEs) guide scheme being rolled out beneath the National Economic Sustainability Programme.According to estimates provided, the sum of N50 billion will be used to grant payroll support, N200 billion for loans to artisans, and N10 billion help to personal transport organizations and workersThe committee will discover eligible SMEs and screening and verification for this fund will be based on corporation registration, and tax registration. The implementation committee will approve disbursements via microfinance banks and fin-tech credit score providers.
MSMEs that are unregistered will obtain support to complete registration with the Corporate Affairs Commission (CAC), and all members will be predicted to make repayments primarily based on signed agreements.
The government disclosed in a tweet on the official handle of the government,informing that the support scheme will include a Guaranteed Off-take Scheme for priority products, and an MSMEs Survival Fund.
The Federal Govt is rolling out, under the National Economic Support Plan that the support schemes for MSMEs nationwide, including a Guaranteed Offtake Scheme (guaranteeing off-take of priority products); and an MSMEs Survival Fund that will make payroll support available to save jobs and sustain local production.
The first track is a Guaranteed Off-take Scheme which will ensure continued local production and safeguard 100,000 existing small businesses to save 300,000 jobs.Priority products include processed foods, personal protective equipment, hand sanitizers, face-masks, face-shield, shoe-covers and pharmaceuticals.
The implementation committee is chaired by Ambassador Mariam Katagum, the Minister of State for Industry Trade and Investment, will collaborate with private sector MSME associations to verify and screen applications from bidding MSMEs, define quantity and price of products required, and also get participants to join in the procurements.With a budget of N15 billion, the SME survival fund is expected to sustain 500,000 jobs in 50,000 SMEs.
Major sectors to benefit from the SME survival fund include hotels, restaurants, creative industries, road transport, tourism, private schools and export-related businesses.The Bank of Industry will also be part of to coordinate the implementation of the scheme.
The scheme will last 3 months with Ambassador Mariam Katagum as Chairman, while Ibukun Awosika, Founder of The Chair Centre Limited (TCCL), and First Bank Nigeria will serve as the Vice Chairman.