The Federal government of Nigeria is set to open a new portal on the 21st of September 2020 to receive Applications from Micro, Small, and Medium Enterprises (MSMEs) who have been affected by the COVID-19 pandemic for them to benefit from the Survival Fund.
During the official flag-off of National MSMEs Survival Fund held in Abuja, the Minister of State for Industry, Trade and Investment, Ambassador Mariam Katagum, said the intervention which will gulp a total of N75 billion is a core part of the N2.3 trillion Nigeria Economic Sustainability Plan (NESP) currently being implemented by the President Muhammadu Buhari-led administration to help cushion the impact of the pandemic with a view to boosting the economy by saving existing jobs and creating new job opportunities.
Speaking at a press briefing to announce the commencement of the MSMEs Survival Fund, the minister said the schemes will be implemented over an initial period of three months in order to provide immediate relief from the economic impact of COVID-19.
She said going by recent statistics released by Small and Medium Enterprises Development of Nigeria (SMEDAN) and the National Bureau of Statistics (NBS), indicating that over 95 per cent of the 41 million MSMEs in the country are micro businesses, the government cannot afford to neglect the huge segment of economic landscape which contributes high percentage to employment and GDP.
- Payroll Support: Support 500,000 vulnerable MSMEs in meeting payroll obligations of between N30,000 to N50,000 per employee over 3 months
- Formalisation Support: offer free CAC Business Name registration for 250,000 new businesses in Nigeria
- General Grant: Support the survival of 100,000 businesses most affected by the COVID-19 pandemic with N50,000 each
- Artisan/Transport Support: provide 333,000 artisans and transport business operators with a N30,000 operations grant to reduce the effects of income loss
- Guaranteed Offtake Scheme: Bulk purchase of products from 100,000 MSMEs to protect jobs and livelihood
MSMEs Survival Fund
The MSME Survival Fund is a conditional grant to support vulnerable Micro and Dmall 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.
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.
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%.
A. Employees’ company Must be registered in Nigeria under the Corporate Affairs Commission, CAC
B. Must have BVN by the company CEO
C. Must have a staff strength of no less than 3 persons
D. Must be owned by a Nigerian
Self-employed Individuals in the following categories
A. Service providers in the transportation sector, i.e. Bus drivers, Taxi drivers, Ride share drivers. (Uber, Bolt Taxify, etc) and Mechanics
B. 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 the provision of grants.
The main objective of this particular scheme is to boost the production capabilities of small businesses with the view to ensuring that they remain in business
The duration of the implementation will be same as the payroll support Target Beneficiaries: Micro and Small businesses registered in Nigeria.
Registration for Payroll Support Begins on 21st September 2020
Nigerians who meet the criteria should apply at https://survivalfund.ng