Why FG set up N50bn fund for MSMES

By allcitynews.ng

In apparent bid to prune the pains and lost brought by coronavirus pandemic on businesses, the Federal Government last year released N50 billion survival fund for Micro, Small, and Medium Enterprises.

It was in accordance with the Micro, Small, and Medium Enterprises Development (MSMED).

The move which was in line with keeping to its promise to support businesses to overcome challenges posed by the COVID-19 pandemic was for the MSMEs Survival Fund with the Payroll support track as the first scheme to rollout (50 Billion Naira).

The MSMEs Survival Fund was implemented by the President Muhammadu Buhari-led administration to help cushion the impact of the COVID-19 pandemic with a view to boosting the economy by saving existing Jobs and creating new job opportunities.

The scheme was 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 103 million jobs across the country and specifically impact on over 35,000 individuals per state.
The duration of the scheme which was implemented over an initial period of three months waa in order to provide immediate relief from the economic impact of the pandemic.

Target Beneficiaries: 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%.

1. Employees of MSMEs:
The benefiting companies to meet the following criteria:
Employees’ company Must be registered in Nigeria under the Corporate Affairs Commission (CAC).
Must have BVN by company CEO
Must have a staff strength of no less than 3 persons
Must be owned by a Nigerian.

2. Self-employed Individuals in the following categories:
Service providers in the transportation sector, i.e. Bus drivers, Taxi drivers, Ride share drivers, (Uber, Bolt, Taxnfy etc) and Mechanics. Artisans, Electricians Plumbers, etc.

HOW THE MSME SURVIVAL FUND HELPED MSMEs PAYROLL SUPPORT – Supports 500,000 thousand MSMEs in meeting payroll obligations of between N30,000 to N50,000 per employee over the period of three (3) months.

FORMALISATION SUPPORT – Provide free CAC business name registration for 250,000 businesses.

GENERAL GRANT – Support the survival of 100,000 businesses most affected by the covid-19 pandemic with N50,000 each.

HOW TO APPLY FOR MSME SURVIVAL FUND

Registration for Payroll Support which began on 21st September 2020. To apply visit : https://survivalfund.ng

For more Information: Visit the official MSME Survival Fund 2020 Registration Portal.