The federal government has begun the process that will lead to the disbursement of N75 billion Survival Fund to a cluster of Micro, Small and Medium Enterprises (MSMEs) as a means of ensuring their survival and recovery from COVID-19 induced economic hardship.
At the moment, many industries in Nigeria are struggling to survival, while many others have seized to operate. A situation which led to the loss of many jobs during and after the lockdown that lasted for months due to the outbreak of coronavirus.
Going by the economic realities in the country, if a hand of support is not extended to SMEs by the government, more financial difficult days ahead would further deepen the hardship currently been faced by Nigerians due to job loss or collapsed of businesses during and after the lockdown.
While speaking with the media in Abuja, the Minister of State for Industry, Trade and Investment, Amb. Maryam Katagum stated that the Survival fund is a cluster of Grants intended to support vulnerable Micro, Small and Medium Enterprises in meeting their payroll obligations and safeguard jobs within the MSME space from the shock of the Covid-19 pandemic.
According to her, the specific objectives are to “stimulate direct local production in the 36 States of the Federation and the FCT by enabling MSME’s in the production sector with funds to stimulate ‘post-COVID lockdown’ off-take products.
“Augment the payroll obligations of businesses in the Health, production, Education, Hospitality and Food production sectors. The program is to save over One Million, Seven Hundred Thousand (1,700,000) jobs,” she noted.
The program which has targeted the critical industries if properly implemented will go a long way in rebooting the growth of the country’s industries as well as save jobs.
The government had begun the process of registering eligible beneficiaries on the 21st of September 2020
According to government schedule, the program will give grants to self-employed individuals especially service providers like Bus drivers, Taxi drivers, rideshare drivers and artisans such as electricians and plumbers.
The program also targets 500,000 individual beneficiaries in the Hospitality industry, Private Schools, Factory owners, Law Firms and Hospitals.
Again, the Scheme targets N50,000 Grants to 100,000 MSMEs. This group of beneficiaries are encouraged to take advantage of registration through MSME Associations, registered Business Clusters, Trade Associations and Unions etc” the Minister had stated.
The Scheme also has a One-off Payment of N30,000 plan for artisans and transport workers. The target beneficiaries are Mechanics, Taxi Drivers, Hairdressers, Keke Napep Riders, Okada riders, plumbers and electricians
While the MSME Guaranteed Offtake Stimulus Scheme is targeted at protecting and sustaining the income of vulnerable Micro and Small Enterprises by guaranteeing the offtake of their products like face masks, hand sanitizer, liquid soap, disinfectant and processed foods.
Katagum had explained that all applicants will be required to upload details supporting their applications which will be verified and if successful, approved for disbursements.”
It is hoped that the Survival Fund will go a long way in arresting businesses from going into comatose and redirect these collapsing sectors into the path of growth and sustainability.
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