FG MSMEs

BOI $1bn loan will improve capacity of MSMEs

by with No Comment Businessfinance

BOI $1bn syndicate loan will improve capacity of MSMEs- FG

The Federal Government has revealed that the Bank of Industry (BoI) under the supervision of the Ministry of Industry, Trade and Investment has concluded a $1billion syndicated term loan in conjunction with international partners to further support Small and Medium Scale Enterprises (MSMEs) in the country.

READ ALSO: Inflation tops discussion as MPC meets today

Disclosing this in Abuja, on Monday, at the Quantum Mechanics Limited MSMEs survival Fund Capacity Building, the Minister of Industry, Trade and Investment, Otunba Adebayo, said the loan is aimed at “further improving the capacity of the bank to effectively support Micro, Small and Medium Scale Enterprises (MSME) – across key sectors of the Nigerian economy – with affordable loans of medium to long-term tenor, alongside moratorium benefits.”He noted that “there is an ongoing discussion with Dunn & Bradstreet to establish an SME risk rating agency – the SME Rating Agency of Nigeria (SMERAN), to provide an empirical basis towards analysing the eligibility of SMEs to access credit.

“I will like to reiterate that our Ministry fully supports MSMEs, as demonstrated by our MSME Survival Fund Initiative which was launched in the wake of the COVID-19 Pandemic by the Federal Government as part of the Nigerian Economic Sustainability Plan (NESP); aimed at protecting MSME businesses from the shocks the Pandemic.”The Minister explained that the survival fund was estimated to save at least 1.3 million jobs across the country while strengthening the growth potential of beneficiary businesses, stressing that the successful implementation of the scheme so far has contributed immensely to quickly pulling Nigeria out of the COVID-19-induced recession.

He said the National MSMEs Clinics also support the growth of small businesses across the country through the provision of critical infrastructure, with twenty-six of such clinics having impressive results.

According to a statement made available to newsmen by Ifedayo Sayo, Adebayo further disclosed that the Nigerian Export Promotion Council (NEPC) has launched the Export Expansion Facility (EEF) under the NESP, to support the resilience of new and existing MSMEs to respond to the shocks of the COVID-19 Pandemic to retain and create more jobs, especially youth and women businesses through the Youth Export Development Programme (YEDP) and Promoting Women Inclusiveness in Non-Oil Export.

SOURCE

Electricity NEC MSMEs

NEC: Poor electricity, multiple taxations killing MSME

by with No Comment Business

ABUJA—A Sub-national Environment Survey report submitted to the National Economic Council, NEC, has identified poor electricity supply, deplorable road infrastructure and multiple taxations as some of the challenges impeding the growth of Micro, Small and Medium Enterprises (MSME) in Nigeria.

READ ALSO: Most MSMEs Can’t Withstand Shocks—Olurotimi

The report was submitted to NEC by the Special Adviser to the President on Ease of Doing Business, Dr Jumoke Oduwole during the virtual meeting at the Presidential Villa, Abuja. Addressing State House correspondents after the meeting presided over by Vice President Yemi Osinbajo, Dr Oduwole said her office would be working with the states to resolve the issues.

According to her, “Businesses have said that electricity supply is beat low, the hours are low. Then, we will be working with the governors and federal agencies to look into areas like that. “SMEs also talked about road infrastructure, they talked about regulatory challenges, paying of taxes, the multiplicity of charges. “So, we will be working with the state’s internal revenue agencies to ensure that there is harmony.” Dr Oduwole disclosed that the report was a peer review document that would enable state governments to see how they are doing in comparison with other states in providing a conducive business environment. “So, the Ease of Doing Business Councils reports to the states’ executive councils and they implement the report just like PEBEC and FEC; so, the system is replicated across the country. “We believe that as we continue to drill down into Nigeria, progressively making it easier to do business, our productivity will increase as we support our SMEs. “We make sure that on competitiveness, we are working actively at it even as AFCFTA has gone into life and the journey of continuous improvement and institutionalization of the reform agenda is the top priority for the administration”, she said. She explained that the survey was conducted across Nigeria by the Presidential Enabling Business Environment Council, PEBEC, which has been on a nationwide tour, called iteration, since 2019, to meet and interview SMEs on their operations. “So, we decided to carry out an empirical survey; it was carried out by KPMG. “The methodology framework had earlier been approved by NEC as far back as 2018 and we have four homegrown indicator areas on which the survey is based which are infrastructure and security; transparency and access to information; the regulatory environment and skills and labour readiness in each state and the Federal Capital Territory.” Oduwole said that the objective of the report was to provide a status report of the state’s business climate and to provide a baseline on the business climate of each state. “It is also going to help states as they prepare for their sub-national World Bank Ease of Doing Business ranking which is done once every four years,” Oduwole stated. Also, briefing correspondents on the government’s plans to formulate a Monitoring and Evaluation (M&E) Policy on prudent public spending, Governor of Nassarawa State, Abdullahi Sule, said this is to strengthen accountability. Governor Sule said that the policy would also provide an “independent objective assessment of the merit of public policy strategies, programme as well as projects” and “a source of reliable meaningful information for the citizens to assess government policy.” According to Sule, the objectives of the National M&E Policy were “to establish monitoring and evaluation as a source of credible information so as to guide government’s decisions, planning, resource allocation and expenditure; to strengthen accountability and feedback by the government to Nigerians; and to provide effective guide for the MDAs for the conduct of M&E functions. “The policy will also enhance coordination and monitoring and evaluation processes within the Nigerian public sector for standardization in the practice of M&E. “We noted that the policy recommends that policies by our key programmes and projects must be evaluated and summary of evaluation shall be presented to the Federal Executive Council and the State Executive Council at the state levels. “We also noted that there’s going to need to establish a National Council on Evaluation under the chairmanship of the Minister of Finance who is responsible for the M&E.” Sule said that state governments were expected to domesticate the National Monitoring and Evaluation Policy for effective performance tracking as well as continuous monitoring.

Read more

MSMEs

Most MSMEs Can’t Withstand Shocks—Olurotimi

by with No Comment Business

Businesses may have suffered their worst year in 2020, but this year will see Micro, Small, and Medium Scales Enterprises (MSMEs) thrive if they work on all the lessons learnt and use them to adapt to the changing landscape, Mr Seye Olurotimi, the founder of MSMEs Africa, has said.

READ ALSO: Leveraging technology to optimise MSMEs, empower women

Mr Olurotimi, while appearing as a guest on TV Continental’s programme called Business Nigeria anchored by Mr Tolu Ogunjobi, which was monitored by Business Post, noted that small businesses do not have shock absorbers, which he said affected them when the global economy was faced with an unprecedented health crisis last year.

In his words, “MSMEs don’t have shock absorbers to withstand what the big corporates could absolve and when COVID-19 came and forced people to stay back at home, a lot of them didn’t have the infrastructure to run their services.

“It affected the way they made money. So, people could not make money, couldn’t meet their obligations, some have debts. Many have had to lay off their staff because they could not afford them.”

Mr Olurotimi noted that the recession that came with the situation led many to grapple with a lot as it made it harder for them to meet up with a lot of obligations.

FG’s interventions good

However, he commended several interventions from the federal government, which he said some have benefitted from. But he noted that the programme could not meet the demands of the over 40 million SMEs in the country.

Mr Olurotimi praised the payroll scheme of the federal government, which helped to pay workers and not business founders for a specified period, adding that the Guaranteed Offtake Scheme helped to provide funds to produce goods and also provided avenue’s to help them sell these goods.

While lauding these schemes, he advised the FG not to “just give people money” but should “train them on how to use them,” submitting that “for every intervention, let’s create a part that trains people on how to manage businesses so as to build capacity.”

He further said that despite the considerable improvement made as regards the movement of Nigeria in the ranks of global ease of doing business, there was more the country could do. Nigeria moved 15 places to 131 from 146 out of the 190 countries assessed by the World Bank.

He charged the Presidential Enabling Business Environment Council (PEBEC) to do more, explaining that the rate that businesses spend on electricity, rent and transport are not sustainable for business.

READ MORE

Excellence MSMEs

Leveraging technology to optimise MSMEs, empower women

by with No Comment Business

Leveraging technology to optimise MSMEs, empower women

The Team Lead, Excellence Advisory Limited, a technology business support services provider, Excellence Anurika Joshua, is leveraging technology to help Micro, Small and Medium Enterprises (MSMEs) build structure and run their businesses with ease. She is also the founder, Techy Train, her company’s training arm, which offers technology-based vocational skills primarily to women and youths. It has trained over 3000 women and youths from across Nigeria, Ghana, United States and United Kingdom so far. She shares the inspiring story of her rise to firm and fortune, her initial challenges and plans with Assistant Editor CHIKODI OKEREOCHA.

READ ALSO: Paylink partners Google to train 15,000 MSMEs in Nigeria

Her fighting spirit is extraordinary. While women faced with the same or similar challenges as hers, when she started her entrepreneurial journey in 2019 would have probably capitulated, the Team Lead, Excellence Advisory Limited, a technology business support services provider, Excellence Anurika Joshua, stayed on, refusing to give up the fight to survive in the face of a turbulent marriage, which, by her admission, became toxic shortly after wedding in 2015.

Narrating her ordeal, Excellence told The Nation that she got married in February 2015 while a student at the University of Ibadan (UI). But, unfortunately, the marriage packed up later after what she described as “Three years of severe emotional and physical abuse, a failed suicide attempt and no job.” “I was broke and I had a two-year-old son. I was desperate to survive, pay my bills and feed my son, but the more I looked for help, the more I was exposed to harassment and abuse,” she added.

But, Excellence refused to allow the situation to break her. With remarkable grit, tenacity and instinct for survival, she succeeded in weathering the storm and founded Techy Train, which provides access to technology-based vocational skills primarily to women and youths across Nigeria, Africa and the world. In fact, she was able to keep hope alive until, as she put it, “I found technology, harnessed its power and leveraged it to earn big from my bed, working virtually for individuals and corporates.”

By dint of hard work and perseverance, the 2018 graduate of Biomedical Laboratory Sciences from the College of Medicine, University of Ibadan, has carved a niche for herself in the provision of technology business support services solutions to MSMEs. She said her vision is to pioneer a paradigm shift in entrepreneurship in Africa by helping African born businesses and MSMEs build structures that are  sustainable, profitable and thrive globally.

Backed by experienced partners, an Advisory Board as well as highly motivated staff, Excellence Advisory Limited is located in Abuja. However, 90 per cent of its clients, according to the Team Lead, are outside Abuja. The company, however, takes clients globally, having been duly registered in the United States, too. But, Excellence said there were plans to expand the company’s services outside the Federal Capital Territory (FCT), even beyond Nigeria’s shores.

According to her, Excellence Advisory has a bouquet of services that have already positioned it as the destination of choice for MSMEs seeking for consultant to help them handle everything tech so they can focus on what matters most: their real businesses.

Some of the business support services that have endeared the company to MSMEs and non-profit organisations include Business Advisory Support Services (business plan development, finance model design, profit maximisation etc.); Management Consultancy Support Services (marketing template design, product design, services design, corporate communications etc.); Learning and Development Support Services (business training, customised trainings etc.)

Others are Business Operations (customer relations, cash management etc.); Process Re-engineering Support Services (creating internal structures, finance and audit processes, procurement, and supply chain design etc.); Strategic Branding Support Services (digital marketing, social media campaigns, brand statement design etc.); Info-tech Support Services (software development, APP development, website development, bulk SMS).

A key aspect of Excellence Advisory’s soaring brand, according to the Team Lead, is its subsidiary Techy Train. Registered as a business in July 2019 and formerly called Animations with Excellence, Techy Train is the training arm of Excellence Advisory Limited. The platform provides access to technology based vocational skills mostly to women and the youth. And it does this by using “accelerated learning” techniques that allow trainees to learn faster and remember more of what they learn.

As the Abuja-based budding entrepreneur explained: “The key is “involvement.” Our approach follows from the old saying: “What you hear, you forget; what you see, you remember; what you do, you understand.” Our lessons are simplified and practically tailored, which gives you an option to actually see what you’re learning beyond learning using our engaging audio + visual demonstration technique that helps you apply faster and immediately.

“Furthermore, you have an option of joining our robust internship where you get to do and grow and then earn. So, when women sign up with us, they learn, work and earn. We have trained over 3000 individuals from across Nigeria, Ghana, United States and United Kingdom. Over 20 per cent of them have gone up to get good employment in the online media space, while over 50 per cent have used the lessons they learnt to grow their business/enterprise and some have gone on to up-skill further in tech.”

The Biomedical Scientist-turned entrepreneur  emphasised: “Technology provides a level- playing ground for women across the world to work and earn good from their convenience and on flexible terms.” While pointing out, for instance, that there are thousands of women who are in the unemployed state she used to be, broke and desperate but handicapped, she said she founded Techy Train to help such women earn more money from the comfort of their homes leveraging technology-based vocational skills.

Excellence, who stated that the rate of unemployment in Nigeria is high, said women are the worst hit. She, however, added that the COVID-19 pandemic made the situation worse for them. While pointing out that the situation of women unemployment in Nigeria was more of an issue of underemployment, she said: “Women are rather exposed to vocational skills like soap making, hair making without going further to the skills for the future: technology skills.”

The Digital Skills Trainer explained that through Techy Train’s online academy, the company offers women skills like web design, effective social media management, virtual assistance, design thinking, graphic design and more.

“Our lessons are highly simplified and pre-recorded screen practical for them to access at their pace and convenience.

“The uniqueness we provide beyond simplifying their learning process is our skill bank where participants of our training who have scored 80 per cent and above in cumulative assessment and discipline are inducted into and offered opportunities to work and their skills further improved.

“We also provide technology services like digital marketing, content creation, video editing and more that aim at helping women build sustainable businesses leveraging technology to build structure and running their business with ease. We do this by teaching them how to do it themselves, doing it for them or doing it with them,” Excellence said.

But how did Excellence Advisory Limited and its subsidiary, Animations with Excellence, registered in August 2020 and July 2019, respectively, become hot items in Nigeria’s MSME space and women empowerment in such a remarkably short time to the extent that she could look back and say with so much pride and confidence that “I am beyond amazed at the rapid growth, the lives touched, level of impact reached as well as the profit made?”

MSMEs

READ MORE

Paylink

Paylink partners Google to train 15,000 MSMEs in Nigeria

by with No Comment BusinessNews

To help Micro, Small and Medium Enterprises recover from the impacts of COVID-19 and reposition them to take advantage of opportunities of a post-COVID future, Paylink, a payment and ecommerce solution for individuals, businesses and non-profits, has partnered with tech giant, Google.

READ ALSO: Elumelu advocates strategic long-term investment to tackle poverty in Africa

The partnership is particularly geared towards empowering MSMEs with the digital expertise they require to thrive through the Paylink MSME Digital Bootcamp.

The organiser of the bootcamp, SystemSpecs, providers of Paylink, made this disclosure during the formal announcement of the expression of participation to MSMEs across Nigeria for the free seminar supported by Google.

Through a series of online trainings, MSMEs in Nigeria will be equipped with the relevant digital skills necessary to drive and scale their businesses in the digital era, recover from the impacts of the coronavirus pandemic, as well as sustain their business on a long term.

As a developing country, MSMEs form the bedrock of enterprise and employment in Nigeria.

A statement by the Ministry of Trade and Investment says Nigeria’s over 37.07 million MSMEs account for more than 84 per cent jobs in the country.

MSMEs also account for about 48.5 per cent of the gross domestic product as well as about 7.27 per cent of goods and services exported out of the country.

The Ministry of Trade and Investment further stated that micro-enterprises, which are the smallest businesses, account for the bulk of the MSMEs in Nigeria with 36,994,578 enterprises (about 99.8 per cent).

Commenting on the partnership, SystemSpecs’ Executive Director, Corporate Strategy, ‘Deremi Atanda, said: “With more than 41 million MSMEs spread across the length and breadth of the country, it is clear that if these enterprises are empowered to attain their true potentials, they would significantly impact all strata of our economy and society at large.

“This is one of the reasons we have partnered with Google, a reputable organisation that deals with businesses across various segments of the Nigerian marketplace, to equip enterprises in the micro, small and medium-scale cadre with key requirements to thrive in a post-COVID economy.

“It is our conviction that MSMEs are an essential stakeholder group in the Nigerian project and we are committed to advancing their causes.”

Covering themes that include brand building, business growth and tools for business management and to hold on selected days in the months of March, April and May, 2021, the training leverages Google’s Digital Skills Africa programme for existing and prospective Paylink subscribers.

“COVID-19 forced many businesses to re-think their strategies and challenged long-standing entrepreneurial approaches. Among others, it brought forth the need to adopt a digital-first strategy in order to reach an extensive and largely unexplored market and ultimately grow bottom-line,” said Google Nigeria’s Country Director, Juliet Ehimuan.

“While a number of MSMEs are aware of this progressive direction, many are not. As with our other trainings, partnering with SystemSpecs to train current and prospective Paylink customers will go a long way in empowering more stakeholders in Nigeria’s MSMEs space,” Ehimuan added.

Paylink.NG is a secure and seamless solution that helps individuals, MSMEs, religious organisations, not-for-profits, social media sellers, crowd funders, event planners, freelancers and others, to receive payments through multiple means, by sharing a customised link.

READ MORE

Tony Elumelu Foundation (TEF)

TEF to prioritise economic recovery of SMEs in 2021

by with No Comment BusinessNews

The Tony Elumelu Foundation (TEF) entrepreneurship programme says the seventh edition will prioritise the economic recovery of small and medium scale enterprises (SMEs) following the global disruptions triggered by the COVID-19 pandemic.

READ ALSO: We want to partner with skilled artisans within Enugu

Somachi Chris-Asoluka, director of partnerships and communications at TEF, who disclosed this, equally wants applicants for the 7th edition of the programme to ensure that their applications reach the foundation before the March 31 deadline. Application for the programme commended on January 1, hosted on the Tefconnect digital platform (www.tefconnect.com)

According to Chris-Asoluka, entrepreneurs’ full participation would create a pathway to economic prosperity.

“This year, we have the capacity to empower more African entrepreneurs than ever, further ensuring that they have adequate training, funding, and mentorship to boost their performance.

It is time for young African entrepreneurs to embrace this much-needed support system to enable thriving and sustainable economic activity. We believe we will continue to see an exponential change in sectors across the continent,” she said.

Chris-Asoluka said that the programme would empower over 3,500 young African entrepreneurs in collaboration with global partners in order to address the challenges arising from the pandemic, adding that the goal was to lift millions out of poverty and create sustainable employment across the continent.

READ MORE

Enugu Artisan Expert

We want to partner with skilled artisans within Enugu

by with No Comment Enugu SME News

To become a Master Crafts Person and be part of the Enugu Skill Up Project under the ZERO interest Human Development Loans (HCDL)

Do you have experience in POP Installation? Do you want to be paid for teaching apprentices?

READ ALSO: Here are banks that pay higher interest for your savings

If YES, kindly register here: www.enuguskillers.com
To become a Master Crafts Person and be part of the Enugu Skill Up Project under the ZERO interest Human Development Loans (HCDL)

Or visit ENUGU SME CENTER at No. 2a Market Garden Avenue by Ebeano Tunnel Round-about, GRA, Enugu, for manual registration.

Ndi-Enugu, get paid while sharing your knowledge as Mastercaft Persons. We also need ‘Experts’ in the fields listed below to train apprentices and get paid!!!

Areas:
Tiling,
Carpentry,
Welding,
Plumbing,
Electrical Installation,
Drywall and Painting,
Solar –Inverter Installation & Maintenance,
Wallpaper Installation,
POP Installation and Wall Screeding
Concrete Construction Work, etc.

If you are interested, kindly see the registration details above.

LivingTrust

AFCFTA: DBN gives first tranche of N1 billion MSMEs fund to LivingTrust Mortgage Bank

by with No Comment BusinessfinanceNews

The aforementioned reforms and policy interventions provide the needed environment for small businesses in Nigeria and the coming of the AfCFTA could not have been at a better time.

Independent of the AfCFTA, the Federal Government of Nigeria has in recent times embarked on some far-reaching reforms aimed at enhancing ease of doing business both for the Small and Medium-sized Enterprises (“SMEs”) and across other strata of business in Nigeria.

READ ALSO: Excitment as FG credits Nigerian man under Survival Fund program.

Some of these reforms can be seen in the areas of policies, laws, business formation and registration, post-incorporation filings and taxation.

Two of the legislative instruments which are critical to these reforms deserve some mention here:

Companies and Allied Matters Act, 2020 (CAMA, 2020)

The signing of CAMA, 2020 into law by President Muhammad Buhari on 7th August 2020 came as a very cheering news to the SMEs community.

Some of the provisions which impact directly on SMEs include but not limited to the following

(i) a single member/shareholder for a private company

(ii) minimum share capital in place of authorized share capital. This allows promoters of business to pay for only shares that are needed at the point of incorporation;

(iii) exemption of SMEs, small companies or companies with single shareholders from the requirement of appointing Auditors to audit their financial records

(iv) filing, share transfer and meetings can be done electronically by private companies

(v) Statement of compliance which was hitherto signed by legal practitioners can now be signed by the business owner or his agent

(vi) introduction of Limited Partnerships and Limited Liability Partnership thereby providing options for promoters who may want to incorporate partnership instead of limited liability companies

(vii) Appointment of company secretary now optional for private companies

(viii) AGMs and other company meetings can now be held virtually, amongst other reforms.

Finance Act, 2020

Complementing the reforms under the CAMA 2020 is the Finance Act.

Enacted first in 2019, the Act was further expanded and re-enacted to among other things address the negative impacts of COVID 19 on small businesses and this led to the new Finance Act, 2020.

The new Finance Act was signed into law on 31 December 2020 and took effect from 1st January 2021.

It introduced over 80 amendments to 14 different laws such as the Personal Income Tax Act, Companies Income Tax Act, Capital Gains Tax Act, Value Added Tax Act, Customs & Excise Tariff Act, Tertiary Education Trust (TET) Fund Act, Fiscal Responsibility Act, Public Procurement Act, CAMA, Nigerian Export Processing Zone Act and Oil and Gas Export Processing Free Zone Act.

SMEs are expected to take advantage of the incentives provided under the new Act.

SMEs with a turnover of less than N25 Million are exempted from Companies Income Tax and TET tax amongst other incentives.

SMEs engaged in primary agricultural production are qualified for pioneer status for an initial period of four years and an additional two years.

MSME Survival Fund

In a bid to ameliorate the impact of COVID-19 on small businesses, the Federal Government of Nigeria launched the N75 Billion Survival Fund for Micro, Small and Medium Enterprises (MSME).

The Fund which was touted as part of the economic sustainability Plan of the Federal government is meant to support small businesses to meet basic operational needs and provide funding in order to boost the production capacity of MSMEs in Nigeria.

The AfCFTA

The aforementioned reforms and policy interventions provide the needed environment for small businesses in Nigeria and the coming of the AfCFTA could not have been at a better time.

The critical question remains, how SMEs can leverage the opportunities provided under the AfCFTA to scale up their operations.

SMEs are often considered the economic backbones particularly in developing countries as they account as major contributors to the GDP and in the area of job creation.

Nigeria has a vibrant SME ecosystem. Out of the 95 Million SMEs in Africa, over 45 Million of them are in Nigeria.

Thus, on the continent Nigeria plays a huge role, accounting for close to 50% of SMEs.

In terms of economic impact, SMEs contribute 48% of national GDP in Nigeria, make up the 96% of businesses and contribute 84% of employment.

Despite the contribution to the economy, SMEs in Nigeria in particular, have continued to grapple with the challenges of high cost of capital and lack of access to funding as well the inability to compete globally.

Due to the largely informal nature of SMEs in Nigeria, obtaining data for the purpose of planning has also been difficult.

On this, the role of Small & Media Enterprises Development Agency of Nigeria (SMEDAN) in amongst other things, formalization of SMEs in Nigeria should be encouraged.

READ MORE

Ndi E nugu

Ndi-Enugu: Registration for Enugu Skillers Associates

by with 2 Comments Enugu SME News

Ndi-Enugu! Do you know you can get paid from sharing your wealth of experience? If you are an expert in any of the listed fields below,

READ ALSO: SME: Gender Bias and Inequality taken Seriously?

Kindly register here: www.enuguskillers.com
To join the ENUGU SKILLERS ASSOCIATES (ESA) and be part of the Enugu Skillers Project under the ZERO interest Human Development Loans (HCDL)

Or visit ENUGU SME CENTER at No. 2 Market Garden Avenue by Ebeano Tunnel Round-about, GRA, Enugu.

Areas:
Tiling,
Carpentry,
Welding,
Plumbing,
Electrical Installation,
Drywall and Painting,
Solar –Inverter Installation & Maintenance,
Wallpaper Installation,
POP Installation and Wall Screeding
Concrete Construction Work, etc.

Ndi-Enugu!

EnuguSkillUp #GburuGburuIsSME #Humancapital

Artisans #MSE #Smallbusiness

The building and construction industry is a fast-growing sector and one of the most important industries in the Nigerian economy, Over the last decade, several changes have occurred in Nigeria, which has helped all sectors of the economy, especially the building & construction sector. With double-digit growth rates in the last 3 years, the construction industry has outgrown all other sectors of the Nigerian economy. The Industry accounted for 4 percent of the Country’s total GDP of N27.22 trillion Naira in Q2 2017. Despite its impressive performance, the industry faces a significant number of challenges including the lack of local skilled labor. The Enugu state government is positioning Enugu youths to take advantage of the opportunity by equipping the youths with high demand skills in the construction industry to fill the skills gap and secure employment;

MSMEs women

Govt. Cushioning the Effects of COVID-19 on MSMEs

by with No Comment Business

How the Nigerian Government is Cushioning the Effects of COVID-19 on MSMEs

The negative impact of the COVID-19 pandemic, particularly on Micro, Small and Medium Enterprises has been overwhelming.

READ ALSO:Digital identity policy key to driving insurance growth

According to research, over 90% of business owners agreed that they were adversely affected. Their cash flow, sales, revenue and salaries/wages took the biggest hit.
While a number of medium and small scale business owners are struggling to keep their heads above water, the resultant effect for the others is devastating. With fast depleted fund reserves, most businesses are forced to close. Employees are laid off, and business owners, disgruntled. Over 82.8 percent of businesses are likely to lay off one to five employees.

MSMEs play a pivotal role in Nigeria’s economic development. They are responsible for over 84 percent of job creation in the country. Therefore, a continuous decline in their sales and profit may trigger a major unemployment crisis in the country.
In order to mitigate such occurrence, the Federal Government introduced the MSME Survival Fund. It is a N75 billion conditional grant to support micro and small enterprises and safeguard jobs in the MSMEs sector. Launched in September, 2020, the Fund is a part of ₦2.3 Trillion stimulus package, known as the Nigerian Economic Sustainability Plan (NESP).

The MSME Survival Fund Scheme has the following categories:
• Payroll Support: assist vulnerable MSMEs in meeting payroll obligations of between ₦30,000 – ₦50,000 per employee over 3 months.
• Artisans/Transport Workers Support: provide artisans and transport business operators with ₦30,000.
• Guaranteed Off-take Scheme: Bulk purchase of products from MSMEs to protect jobs and livelihood.
• General Grant: Support the survival of 100,000 MSMEs most affected by the COVID-19 pandemic.
• Formalization Support: Provide free CAC Business Name registration for 250,000 new businesses.

The program actively promotes gender inclusion – with 45% of the fund going to women-owned businesses.
Since the start of the program till date, the MSME Survival Fund has achieved the following results:
• Provided Payroll Support of between ₦30,000 – ₦50,000 for 3 months to 320,678 employees from 64,395 companies across 36 states and the FCT.
• Given one-time grant of ₦30,000 to 96,157 artisans and transport workers in 36 states and the FCT.
• Provided free business registration with CAC for 140,531 bMSMEs across the country.
Several beneficiaries across the country are thankful to the government for providing this timely intervention.

Mrs Nwodo Uche, the CEO of Andertek Global Roofing Ventures in Lagos State had this to say: “When one of our staff received her first payment from the Payroll Support, she was so elated because we had not been able to pay salaries for some months. It was really a welcome relief for us as a business and for our employees. The payments our staff received for three months seriously helped to cushion the effects of the pandemic. Our gratitude goes to the Federal Government for remembering small businesses in these trying times.”

Mallam Usman Ibrahim who is into fruit production in Kano State shared his experience: “I heard about the Survival Fund from one of my friends. I had to ask one of my staff to help us apply online and upload all our documents. I had ten employees before but I had to downsize to five, due to the effects of COVID-19. When we received our first payment in November, all my staff were so happy. We continued to receive the payments in December and January. It has helped us so much. Sales has now picked up this year and we can now afford to pay our staff again. I am grateful to the government for helping us, just at the time we needed it.”

Mrs Victoria Jashi, the head of Goodnews School in Gombe State was effusive in her praise for the government’s timely intervention: “We really thank the Federal Government for their help. Schools were not open for a long time and it affected our ability to pay salaries. The Payroll Support allowed us to register 10 employees which is the maximum per organization, although we had a staff strength of 52 employees. Every month that we received the payroll support, we brought all the funds together and shared it among all the staff. We just wanted everyone to partake of the benefits.”

READ MORE