The federal government of Nigeria recently disclosed the disbursement of over N66 billion to 1.258 million Nigerians under its Micro small and medium enterprises (MSMEs) survival fund and Guarantee off-take scheme.
This was disclosed by the Minister of State for Industry, Trade and Investment, Ambassador Mariam Katagum, at a town hall meeting of beneficiaries of the MSME survival fund and the guaranteed off-take scheme in Abuja.
The sole aim of the meeting was to highlight the scheme’s achievements in the country, as well as receive the feedback of beneficiaries. The minister further disclosed that the scheme from the federal government was initiated to stimulate the economy after the covid-19 lockdown, especially for small and medium-scale businesses and self-employed individuals previously gainfully employed.
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Recall that the covid-19 pandemic that ravaged almost the entire globe, put a major strain on businesses, most especially small and medium enterprises. Businesses that could not withstand the pressure during the pandemic era were forced to shut down. Also, economies across the globe were thrown into jeopardy.
The scheme through the disbursement of the survival fund was implemented across five tracks in the country, which are; Payroll support scheme, Artisan and Transport scheme, Formalisation Support scheme, General MSME Grants scheme, and Guaranteed off-take scheme.
See what she said; “Under the payroll support scheme, the target was to augment the patrol obligations of MSMEs in the health, production, Education, Hospitality, and Food production sectors. In total, 490,408 employees received between N30,000 and N50,000 as three months’ salaries in the 36 States and the federal capital territory (FCT).
“The artisan and transport scheme was designed to provide a one-off N30,000 grant to 333,000 beneficiaries. We currently have 398,260 self-employed individuals and MSMEs who have benefited across the 36 States and the FCT. Under this scheme, the off-take items were products such as face masks, hand sanitizers, and food items among others from micro and small businesses across the 36 states of the federation and the FCT.
“These items were later handed over to the state governments and the FCT for onward distribution to schools, hospitals, NGOs, as well as other public and private institutions. Overall, the scheme has disbursed the sum of N66,000,020,000 directly to 1,258,183 beneficiaries, including those registered by Corporate Affairs Commission.’’
This is a commendable initiative from the federal government as they introduced the MSME survival fund, which is part of the N2.3 trillion stimulus package of the Nigeria economic sustainability plan to help businesses overcome the challenges posed by the covid-19 pandemic.
The scheme is expected to save at least 1.3 million jobs across the country and specifically impact over 35,000 individuals per state. MSME has been described as the backbone of any nation’s economy.
According to the National Bureau of Statistics, Small and Medium enterprises account for 96% of businesses, and 84% of employment creation in Nigeria. With a total number of around 17.4 million, they account for 90% of the manufacturing sector.
These statistics aforementioned just show the impact small and medium-scale businesses have on the advancement of Nigeria’s economy.
They are notably the highest employer of labor, creating income for unemployed youths, which catalyzes income generation, job creation, and poverty alleviation. The government has no doubt offered support to the MSMEs in Nigeria, unfortunately, a large percentage of them are still operating at a low capacity, as these businesses are still faced with a myriad of problems.
Analysts and Ministers have disclosed that despite the efforts from the government to support MSMEs, they cannot do it alone. They revealed that the business community also has an integral role to play.
With a close look at developed nations around the world, there is no disputing the fact that these nations are developed due to the immense contributions from the MSMEs as a result of significant support from the government.
In Nigeria, the efforts of the government in supporting MSMEs notwithstanding needs more facilitators if it would catch up with its counterparts in other developed and developing countries.