In a statement
released by his Senior Special Assistant on Media and Publicity Laolu Akande,
the Vice President said the support scheme had been covered by the government’s
Economic Sustainability Plan and the survival fund would help provide payroll
support to MSMEs with a minimum of 10 and maximum of 50 staff members.
Osinbajo said;
“I am glad to note
that this year has been an exception despite the challenges posed by the
Covid-19 pandemic. Locally, businesses are facing their most challenging time
and the impact is particularly severe on MSMEs.
“The central plank
of our response as a government to the economic challenges posed by the
Covid-19 pandemic has been the Economic Sustainability Plan recently approved
by President Muhammadu Buhari and the Federal Executive Council.
“In that plan which
essentially envisages an overall N2.3 trillion stimulus package, we made
extensive provision for financial support to MSMEs, ranging from a guaranteed
off-take scheme to a survival fund that includes a payroll support programme
for qualifying businesses.
“The guaranteed
off-take scheme seeks to provide support for MSMEs, manufacturing local
products by guaranteeing the purchase from them of qualifying products such as
face masks, hand sanitisers, PPE for medical workers, etc.
“These products will
be distributed to Nigerians, Nigerian institutions and entities that would
require them.
“The survival fund
will help provide payroll support to MSMEs with a minimum of 10 and maximum of
50 staff. The MSMEs that qualify for these will make available their payroll for
verification by government.
“Companies that meet
the requirements will then be eligible to have the salaries of their verified
staff paid directly from the fund for a period of three months… the target
beneficiaries of this scheme will include private schools, hotels, road
transport workers, creative industries and others.”
Osinbajo also
revealed that there is a N200bn fund which will be made available to MSMEs in
the priority sectors such as healthcare, agro processing, creative industries,
local oil and gas, aviation etc.
He added;
“This will be
granted through a scheme jointly run by the BOI and NEXIM Bank especially for
export expansion.
“The CBN is also
committed to creating a N100bn target credit facility for MSMEs. Already the
recently signed Finance Act already made provision for graduated company income
tax rates with zero rates for small companies and a rate reduction for medium
sized companies.
“Every person who
has taken it upon themselves to start a business in Nigeria no matter how small
is a champion and we as a government owe it to you to create an enabling
environment for you to thrive.
“This is President
Muhammadu Buhari’s commitment to MSMEs in Nigeria that we will continue to
stand by you and to support you and to create opportunities for you to grow and
prosper.”
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