As a part of the federal government plan to sustain Micro, Small and Medium Enterprises most affected by the Covid-19 pandemic, President Buhari approved N60B for the MSME Survival Fund and N15B for the Guaranteed Offtake Scheme.
These two initiatives are to stabilize and help micro, small and medium businesses pay employees, which will, in return, save existing jobs, and also increase employment opportunities.
MSME Survival Fund and Guaranteed Offtake Scheme are a part of the N2.3trn stimulus package of the Nigerian Economic Sustainability Plan (NESP).
The Nigerian Economic Sustainability Plan was set up by the Federal Government to combat negative economic impacts of the Covid-19 pandemic.
MSME Survival Fund
The MSME is not a loan, but a conditional grant given to Micro, Small and Medium Enterprises to retain employees and save employment.
The Federal Government is targeting to save over 1.3 million jobs nationwide and to impact over 35,000 people per state directly.
Duration of the fund:
This initiative is to provide immediate relief to businesses for three months.
Beneficiaries of the fund:
The focus of the MSME Survival Fund is to help two groups of people: MSMEs and self-employed individuals.
Both the MSME Survival Fund and Guaranteed Offtake Scheme have made provision of a 5% special need and 45% female business owners.
Guaranteed Offtake Scheme
While the goal of the MSME Survival Fund is safeguarding employment, the Guaranteed Offtake Scheme is to protect and sustain Micro and Small Enterprises’ income from the adverse effects of the Covid-19 pandemic.
This scheme will birth various initiatives geared towards boosting production capacities of micro and small businesses.
Duration: This scheme is to last for a period of 3 months.
Beneficiaries: MSMEs registered in Nigeria
Features of the MSME Survival Fund and Guaranteed Offtake Scheme
Payroll Support: For a period of 3 months, 500,000 MSMEs affected by the Covid-19 pandemic will be supported with N30, 000 – N50,000 to pay each employee.
Free Business Registration: 250,000 new small businesses will be provided with free CAC business name registration.
General Grant: 100,000 MSMEs affected by Covid-19 are to be granted N50,000 each survival grant.
Operations Grant: 333,000 transport business operators and artisans will be provided with N30,000 each to make up for their income loss during the Covid-19 pandemic.
Guaranteed Offtake Scheme: The federal government will bulk purchase products from over 100,000 businesses to keep these small businesses functioning and save jobs.
Conditions for Applicants
1. Must be Nigerian owned
2. Business must be registered with CAC
3. Business must have more than 3 paid employees
4. The CEO must have BVN
Self-employed individuals include the following:
1. Transportation business operators like Uber drivers, Bolt drivers, bus drivers, Taxi drivers
2. Artisans like electricians, bricklayers, plumbers, etc.
Visit www.survivalfund.ng for registration details