The MSME Survival Fund is a conditional grant to support vulnerable micro and small 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 Federal Government has released new details on the Micro Small and Medium Enterprises (MSMEs) support scheme being rolled out under the National Economic Sustainability Programme.
According to estimates provided, the sum of N50 billion will be used to provide payroll support, N200 billion for loans to artisans, and N10 billion support to private transport companies and workers.
Major sectors to benefit from the MSME survival fund include private schools, road transport, hotels, tourism, restaurants, creative industries and export-related businesses.
The implementation committee chaired by Ambassador Mariam Katagum, Minister of the Federal Ministry of 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.
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 provision of grants.
The fund is not a loan that someone needs to pay back instead it is a grant.
The Nigerian Government will allow 250,000 people to register their businesses for free. The first period of this grant is three months.
The government disclosed in a tweet on the official handle of the government, the support scheme will include a Guaranteed Off-take Scheme for priority products, and an MSMEs Survival Fund.
The scheme will be implemented over a period of three months in order to provide immediate relief from the economic impact of the pandemic.
The Main Objective of this particular scheme is:
- To boost production capabilities of small businesses with the view to ensuring that they remain in business.
- Increase employment and create wealth
- Engender inclusive growth and
- Enhance access by MSMEs to financial services.
To benefit from this scheme, MSMEs would have to go through a rigorous and painstaking verification process which will be based on criteria.
- Employees company must be registered in Nigeria under the Corperate Affairs Commission, CAC.
- Must have a staff strength of not less than 3 persons
- Must have a BVN by company CEO
- Must be owned by a Nigerian
- Service providers in the transportation sector, ie. Mechanics, Taxi drivers, Bus drivers, Electricians, Artisans and Plumbers etc.
MSMEs that are unregistered will receive support to complete registration with the Corperate Affairs Commissions (CAC), and all participants will be expected to make payments based on signed agreements.
HOW TO APPLY
The Registration for the survival fund will begin on the 21st
Visit the website of this project for more information.
The committee will identify eligible SMEs and screening and verification for this fund will be based on company registration, and tax registration. The implementation committee will approve disbursements through microfinance banks and fin-tech credit providers.