Economic sustainability plan lines up support for small businesses

Nigeria’s N2.3 trillion Economic Sustainability Plan has specific support to cushion the effect of the Covid-19 pandemic on Micro, Small and Medium Enterprises, MSMEs.

Part of the plan targeting MSMEs in the country includes the Guaranteed Off-take of products of these small businesses and Payroll support.

The Minister of State for Industry, Trade and Industry, Mariam Katagun, said these components of the Economic Sustainability Plan would provide support for small businesses.

Speaking with State House correspondents on Thursday after the 2020 Edition of the MSMEs Award, Mrs Katagun said; “We have the guaranteed off-take, which is designed to support the MSMEs in terms of their production.

“There are some key are areas, about nine areas that have been identified and government will take-off these items that are being produced and pay for them and get them delivered to various locations free of charge.

“Secondly, we have the issue of the Payroll Support; a lot of MSMEs, because of the Covid-19 pandemic, will begin to think of either laying off staff or reducing staff salary. So, there will be provision of support in that respect,” Mrs Katagun explained.

She said that the Bank of Industry, BOI, would also be expected to release some funds to the MSMEs to enable them to meet their financial obligations and stay afloat.

The Special Assistant to the Vice President on MSMEs, Tola Adekunle-Johnson, said that government was working to mitigate the effect of the Covid-19 on small businesses.

Explaining the impact of the pandemic on MSMEs globally, Adekunle-Johnson stated that the Nigerian government “has put in place some schemes that will immediately kick in to support MSMEs, like the Guaranteed Offtake, the Survival Fund, that will help pay the salaries of staff of MSMEs, hotels, private schools, the creative industry.”

On  the extent to which the MSMEs Awards has contributed to the growth of the small businesses, he said ”it has made a lot MSMEs to even do better than they are doing right now.”

He said that the policies and programmes of government aimed at creating an enabling environment for MSMEs have also helped small business to thrive.  ( VON)