Vice President Osinbajo says financial support for MSMEs in ESP very robust, lists support schemes
As part of efforts to support small businesses in Nigeria to survive the effects of the COVID-19 pandemic, the Federal Government as planned in the Economic Sustainability Plan, ESP, is now set to implement a number of schemes to keep MSMEs afloat, according to Vice President Yemi Osinbajo, .
Osinbajo’s spokesman, Laolu Akande, in a statement on Thursday in Abuja, said the vice president spoke at the 2020 edition of the Micro MSMEs Awards which held via video conference.
According to Prof. Osinbajo “I am glad to note that this year has been an exception despite the challenges posed by the COVID-19 pandemic.
“Locally, businesses are facing their most challenging time and the impact is particularly severe on MSMEs”.
“The central plank of our response as a government to the economic challenges posed by the COVID-19 pandemic has been the Economic Sustainability Plan recently approved by President Muhammadu Buhari and the Federal Executive Council”.
“In that plan which essentially envisages an overall N2.3 trillion stimulus package, we made extensive provision for financial support to MSMEs, ranging from a guaranteed off-take scheme to a survival fund that includes a payroll support programme for qualifying businesses.
“The guaranteed off-take scheme seeks to provide support for MSMEs, manufacturing local products by guaranteeing the purchase from them of qualifying products such as face masks, hand sanitisers, PPE for medical workers, etc.
“These products will be distributed to Nigerians, Nigerian institutions and entities that would require them.
“The survival fund will help provide payroll support to MSMEs with a minimum of 10 and maximum of 50 staff. The MSMEs that qualify for these will make available their payroll for verification by government.
“Companies that meet the requirements will then be eligible to have the salaries of their verified staff paid directly from the fund for a period of three months.”
Continuing on the MSMEs support scheme, Osinbajo said: “the target beneficiaries of this scheme will include private schools, hotels, road transport workers, creative industries and others.
“The verification process will be very rigorous and painstaking”.
“In addition we have a N200 billion fund which will be made available to MSMEs in the priority sectors such as healthcare, agro processing, creative industries, local oil and gas, aviation etc.
“This will be granted through a scheme jointly run by the Bank of Industry and Nigerian Export Import (NEXIM) Bank especially for export expansion.
“The CBN is also committed to creating a N100 billion target credit facility for MSMEs. Already the recently signed Finance Act already made provision for graduated company income tax rates with zero rates for small companies and a rate reduction for medium sized companies.”
The Vice President added that the Federal Government will continue to implement similar focused MSME interventions around the country.
“Kaduna state for example is working on a tomato paste production plant, Lagos is putting together a fashion hub, the FCT is equally set to launch a carpentry cluster while Anambra state is almost ready to commission its leather works cluster”.
“All of these are scheduled for 2020. In 2021, Edo, Ekiti, Katsina, Ogun, Bauchi and Enugu States would commission shared facilities that will bring MSMEs together by cluster and provide shared equipment and resources and business support hub,” the Vice President added.
He commended the participants at the awards for their ingenuity in starting up and sustaining their businesses, urging those who were not shortlisted not to relent in what they are doing.
He specially commended all those who have started businesses in Nigeria, no matter how small, describing them as champions.
“Every person who has taken it upon themselves to start a business in Nigeria no matter how small is a champion and we as a government owe it to you to create an enabling environment for you to thrive.
“This is President Muhammadu Buhari’s commitment to MSMEs in Nigeria, that we will continue to stand by you and to support you and to create opportunities for you to grow and prosper,” the Vice President said.
Adejoke Lasisi of Planet 3R Limited won the MSME of the Year Award while Kaduna State was awarded the Best MSME Clinic Support State. The winners got cash and car prizes.
The event was attended by several State Governors and their representatives, the FCT Minister Mallam Muhammed Bello, the Industry, Trade and Investment Minister of State Ambassador Mariam Katagum and various heads of MDAS and captains of industry.