FG rolls out Survival Funds for MSMEs, set to offer free CAC Registration

The President Mohammadu Buhari led administration in a bid to cushion the effect of the COVID-19 Pandemic in Nigeria has earmarked Billions of Naira for the Micro, Small and Medium Enterprises (MSMEs) as part of the Nigeria Economic Sustainability Plan (NESP) to ensure survival of businesses which have been affected by the COVID-19 Pandemic through a program called MSME Survival Fund.

About the Program

The All Progressive Congress (APC) adminstration which puts MSMEs at the forefront of its econonic strategies understood that the COVID-19 pandemic has created severe Economic consequences for all countries around the world and Nigeria has also been very badly hit while the lockdowns froze economic activities, causing massive job losses and supply chain disruptions.

The MSME Survival Fund targets about 1.7 Million Nigerians who own Micro, Small and Medium Enterprises in Nigeria which have been affected by the COVID-19 Pandemic and would estimatedly save 1.3 Million jobs across the country, impacting about 35,000 individuals per State. There will be 45% consideration for Female owned enterprises and 5% consideration for enterprises owned by those with special needs.

The Program is grouped into 5 Categories as will be explained below.

1. Payroll Support:

The beneficiaries here would be employees of MSMEs which have proven record of the COVID-19 Pandemic negative impacts on their businesses.

The vulnerable MSMEs would be supported in meeting payrol obligation of between N30,000 to N50,000 per employee over 3 Months.

Here, 500,000 Employees of the vulnerable MSMEs would be direct beneficiaries and not more than 10 employees would benefit per MSME.

Note: The benefiting MSME must be registered with Corporate Affairs Commision, possess BVN owned by the CEO, possess Staff strength of not less than 3 employees and must be owned by Nigerians.

2. Formalization Support (Free CAC Registration)

The beneficiaries here would have their Businesses registered free of charge by the Corporate Affairs Commision as the Federal Government has paid for the registration.

250,000 Nigerians would through this program, have their Businesses registered free of charge. You and I know how much it costs to register a business but thanks to the Federal Government, it will be free of charge.

3. General Grant:

Here, 100,000 beneficiaries who are Micro, Small and Medium business owners which have track records of COVID-19 effect on their Businesses would recieve a grant of N50,000 each which would be basically used to boost their businesses.

For now, it's not clear if the the benefiting MSME must be registered with Corporate Affairs Commision.

4. Artisan/Transport Supports:

Artisan business owners, transporters such as bus drivers, Keke/Okada riders, etc would through this program recieve a grant of N30,000 each.

A large number of 333,000 Artisan owners and Transporters across the Federation would be direct beneficiaries of this particular program.

5. Guaranteed Offtake Scheme:

This particular program targets Micro, Small and Medium Business owners who are in the production sectors.

The Federal Government plans bulk purchase of their products to boost their productive capacity in order to protect jobs and improve livelihood.

100,000 business owners in the production sector would have their production capabilities boosted through this program.

How to Apply

Application begins from 21st September, 2020. Click here to know more

Who can Apply

Every Nigeria Micro, Small and Medium business enterprise owner is eligible to apply.

Applicants must posses Bank Verification Number (BVN)

Can one individual benefit in one or more of the programs?

The Bank Verification Number (BVN) is a powerful tool used to prevent double or multiple application in programs like this. It will be difficult for one individual to benefit from one or more of the programs.

Kindly check back here for more update.