The Federal Government is set to implement a series of intervention programmes for the Micro, Small and Medium Enterprises sector.
The measures, which will gulp about N275bn, will assist the Federal Government to tackle the negative impact of the Coronavirus pandemic on the operations of MSMEs.
The intervention, expected to be implemented in the next three to six months, will also assist government to support MSMEs in a manner that will enable them respond well to the economic challenges associated with Covid-19.
The fiscal measures are part of the components of the programme to be implemented under the N2.3trillion Economic Sustainability Plan, which was endorsed by the National Economic Council last Thursday.
The N275billion palliative programme, according to an analysis of the plan, will be jointly implemented by the Ministry of Finance, Budget and National Planning; and the Ministry of Industry, Trade and Investment.
Under the intervention, the Federal Government is expected to spend about N260bn to establish an SME Survival Fund to sustain at least 500,000 jobs in 50,000 SMEs.
Under this programme, the government will identify beneficiary small businesses in designated sectors, such as hotels, creative industries, road transport, tourism, private schools and export-related businesses.
The initiative will also assist the goverment to identify, approve and disburse grants to beneficiaries through microfinance banks and financial technology credit providers.
A further breakdown of the N260bn showed that the Federal Government, through the Bank of Industry, would be spending N50billion on payroll support; N200billion to provide loans to artisans; and N10billion to support private transport companies and workers.
A total of N15billion will also be spent to sustain 300,000 jobs in 100,000 MSMEs by guaranteeing off-take of priority products, such as processed food, Personal Protective Equipment, hand sanitisers, face-masks, face-shields, shoe covers and pharmaceuticals.
This initiative will enable government to safeguard existing small businesses to save jobs and ensure continued local production.
Part of this initiative will also enable government to purchase identified items from small businesses, define the products, quantity required and the price for the identified products, as well as solicit interest from MSMEs to participate in procurement.
Other areas of support to cushion the negative impact of Covid-19 on businesses are zero charges for first 200 micro and small businesses to register their products; 80 per cent reduction in charges for product registration of micro and small businesses for the next six months; provision of waivers on administrative renewal of expired product licences for micro and small businesses for three months.
