Federal Govt Retains 1.3m Jobs Through MSME Support Scheme

Vice president Yemi Osinbajo says the federal government has retained 1.3 million jobs through its Micro Small and Medium Enterprises (MSMEs) through its payroll support scheme by providing up to N50,000 in monthly salaries for up to 10 staff of qualifying businesses for a duration of three months.

The vice president also claimed that the government, in the development of its Economic Sustainability Plan (ESP) has made provision for a one-off grant of N30,000 for 333,000 self-employed persons working as transporters and artisans under the Artisan and Transport Scheme, with another N50,000 grant earmarked for 100,000 MSMEs and provision of financial backing up to N191 billion in loans to 34,144 MSMEs.

Prof Osinbajo made the remarks yesterday at the Development Bank of Nigeria’s 3rd annual lecture series with the theme: Thriving in the Face of Domestic and Global Disruptions. He was represented by the minister of finance, budget and national planning, Zainab Ahmed.

Osinbajo said government has prioritised policy support for the robust growth of MSMEs in the National Development Plan 2021-2025 across the key sectors of the economy.

With the global and domestic disruptions, especially the side structural problems like insecurity and infrastructural deficit, difficulties facing MSMEs have increased significantly, a reason Buhari said the DBN must step up to the plate and expand its funding windows to provide affordable financing to a wider cross-section of MSMEs.

He told participants at the congress hall of Transcorp Hotel in Abuja that the relatively low contribution of MSMEs to exports is concerning given their significant contribution to nominal GDP and for this reason, urgent steps are being taken to alleviate the binding constraints limiting MSME participation in cross-border trade.

Managing director/CEO of Development Bank of Nigeria (DBN) Dr Tony Okpanachi said the fact that MSMEs find themselves frequently affected by unpredictable external factors such as natural disasters, climate change issues and disease outbreaks make it imperative for the bank to champion the conversation on how MSMEs can prosper despite the odds, by exposing ways through which MSMEs can adapt in these times.

Okpanachi stressed that there is still a compelling need for businesses to continue to innovate especially, as the world gradually recovers from the disruptions. He promised that DBN will continue to work with its Participating Financial Institutions (PFIs) to eliminate the financing constraints faced by this critical sector of the economy.

Keynote speaker at the event and chief executive officer of Access Bank Plc Harbert Wigwe said for Nigeria to have a middle class, it must build its SMEs to be more resilient franchises than they are today. He said Nigeria can build its agriculture better to make it a major source of Forex earning.

Wigwe told the congregation that there must be a change in mindset for businesses to change the current situation to a beneficial one. “There need to be a prioritisation around book keeping,” he added.

The Access Bank boss said Nigerian businesses need to start building strategic alliance, adding “there is nothing wrong in building partnerships that last.” He advised MSME operators to invest in supply chain and value chain.

According to him, about a billion dollars has been received through Access Bank alone to support SMEs from local and international organisations. He said the aim is to help businesses, especially women owned businesses unlock opportunities.