Presidency: N75bn MSMEs Survival Fund Will be Evenly Distributed Across States


•Lagos, Kano, Abia get marginal increase

*13,000 beneficiaries for 3 months Payroll Support per state

*2,640 for N50,000 MSME Grant per state

Adedayo Akinwale in Abuja

The Presidency has once again assured that the N75 billion Economic Sustainability Plan’s (ESP) Medium and Small-scale Enterprises (MSMEs) Survival Fund would be evenly distributed across the states of the federation.

It, however, added that Lagos, Kano and Abia would get slightly higher numbers of beneficiaries.

This was contained in an updated report of the federal government on the implementation of the Survival Fund scheme, as the ESP scheme continues to gain attention with the emergence of beneficiaries on the first set of States across the country.

The report revealed that the Steering Committee led by the Minister of State for Industry, Trade and Investment, Amb. Mariam Katagum, was working to ensure smooth implementation of the programme across the states and FCT as focal persons are enlisted by the Project Delivery Office (PDO) to drive the operationalisation of the schemes in communities within the states.

The report further explained that the scheme comprises of five tracks namely; Payroll Support, General MSMEs Grant, Formalisation Support, Artisan and Transport Grant, and the Guaranteed Off-Take Scheme.

It stressed that the Payroll Support track targets 500,000 individual beneficiaries, adding that the scheme would support MSME payroll obligations by paying between N50,000 (maximum) and N30,000 (minimum) to between 3 and 10 staff of the business for a period of three months.

The report said that target beneficiaries under this track include, MSMEs in the hospitality industry, Private Schools, Factory owners, Law Firms, hospitals etc.

It noted that for the General MSMEs grants, N50, 000 one-time grants would be given to 100, 000 MSMEs, and target beneficiaries are qualified MSMEs.

The report pointed out that under the Formalisation Support (free CAC registration for new businesses), the federal government would formalise the registration of 250,000 new businesses with the Corporate Affairs Commission at no cost to the MSMEs.

It said Individuals eligible to benefit from this track of the scheme must be Nigerians and have verifiable BVN.

For the Artisan and Transport Grants which is a one-off payment of N30, 000 to each beneficiary, the report said the target group include, Mechanics, Taxi Drivers, Hairdressers, Keke-Napep riders, Okada riders, plumbers, electrician, etc.

The report added that Guaranteed Off-take Stimulus Scheme is targeted at MSMEs in the production sector and the Objective is to protect and sustain the income of vulnerable Micro and Small Enterprises by guaranteeing the off-take of their products.

A breakdown of the detailed distribution procedure for the five tracks under the Survival Fund revealed that under Payroll Support; Lagos gets 25, 000 beneficiaries; Kano, 17,000; Abia, 16, 000; other states 13, 000 each.

While on general MSME Grants, Lagos gets 3, 880; Kano, 3,280; Abia, 3,080; other states , 2,640 each; while on Free CAC registration: Lagos gets- 9,084; Kano, 8, 406; Abia, 7, 906; other states 6,606 each.

The report also shows that on Artisan and Transport Grants: the 36 States and FCT get 9,009; while Guaranteed Offtake Stimulus Scheme (MSMEs) – Lagos, 3,880; Kano, 3,280; Abia, 3080 and other states 12,640 each.

The report further indicated that Abia, Lagos and Kano States were separated from the others in the distribution of slots for beneficiaries because of their special status in the MSMEs space, having a larger concentration of small businesses in the country.

The Senior Special Assistant to the Vice President on Media and Publicity, Mr. Laolu Akande, while confirming the report explained that Lagos, Kano and Abia had more MSMES activities in their States than the rest and this explains why they got slightly higher numbers of beneficiaries.

The report said: “Lagos, Kano and Abia get marginal increase. 13, 000 beneficiaries for 3 months Payroll Support per state. 2,640 for N50, 000 MSME Grant per state. 6,606 for free CAC company registration per state. 9,009 for N30, 000 Artisan and Transport Grant per state. 2,640 for Guaranteed Off-take Scheme per state.”

“While Lagos, Kano and Abia will get slightly higher numbers of beneficiaries, all other States and the FCT will get an evenly distributed share of the Economic Sustainability Plan’s (ESP) N75 billion MSMEs Survival Fund.”

On the ongoing disbursement of grants under the Artisans Track, in the first set of States, the report indicated that 66% of the total number of registered potential beneficiaries are male artisans while 34% are female artisans.

It added: “The intention of the federal government, under the scheme is to augment the payroll obligations of businesses in the Health, Production, Education, Hospitality and Food production sectors; provide N50, 000 grants to an additional eligible 100,000 MSMEs; register 250,000 new businesses with the Corporate Affairs Commission (CAC) at no cost to the MSMEs; and Support self-employed individuals like Mechanics, Taxi Drivers, Hairdressers, Keke Napep Riders, Okada riders, plumbers, electricians etc with one-off payment of N30,000 to each of them.

“The plan is also geared towards stimulating direct local production in the 36 States of the Federation and the FCT by enabling MSMEs in the production sector with funds to stimulate ‘post COVID lockdown’ off-take products.
The report allays any fears of marginalization of States in the distribution of slots for the five tracks of the Survival Fund.

“Worthy of note is the fact that the programme is to save over 1,700,000 jobs and special focus will be given to 45% female owned MSMEs and 5% special needs owned MSMEs.”