N75bn Economic Sustainability Plan: Lagos, Kano, Abia get priority

Lagos, Kano and Abia states are to be treated differently from other states of the federation in the distribution of palliatives under the N75 billion Economic Sustainability Plan (ESP) Micro, Small and Medium Enterprises (MSMEs) Survival Fund, as they will have more beneficiaries. Other states and the Federal Capital Territory (FCT) are to have lesser but equal number of beneficiaries of the fund. The presidency is adopting this approach based on the number of MSMSEs in the various states. It affirmed that the three states were separated from the others in the distribution of slots for beneficiaries because of their special status in the MSMEs space, having a larger concentration of small businesses in the country. This is contained in an updated Federal Government report on the implementation of the survival fund scheme. Presidential spokesman, Mr Laolu Akande, confirmed that Lagos, Kano and Abia states would get more share because of the larger presence of MSMES activities in the states than the rest. According to the report, the Steering Committee, led by the Minister of State for Industry, Trade and Investment, Ambassador Mariam Katagum, was working to ensure smooth implementation of the programme across the states and FCT, as focal persons are enlisted by the Project Delivery Office (PDO) to drive the operationalisation of the schemes in communities within the states. A detailed distribution procedure for the five tracks under the survival fund shows that for Payroll Support, Lagos gets 25,000 beneficiaries; Kano, 17,000; Abia, 16,000; other states 13,000 each; for General MSME Grants, Lagos gets 3,880; Kano, 3,280; Abia, 3,080; other states, 2,640 each. For free Corporate Affairs Commission (CAC) registration, Lagos, 9,084; Kano, 8,406; Abia, 7,906; other states 6,606 each; Artisan and Transport Grants – 36 States and FCT , 9,009; and Guaranteed Offtake Stimulus Scheme (MSMEs), Lagos, 3,880; Kano, 3,280; Abia, 3080 and other states 12,640 each. The government report allayed fears of marginalisation of states in the distribution of slots for the five tracks of the Survival Fund. On the ongoing disbursement of grants under the artisans track in the first set of states, the report shows that 66 per cent of the total number of registered potential beneficiaries are male artisans, while 34 per cent are female artisans. It said: “The intention of the Federal Government under the scheme is to augment the payroll obligations of businesses in the health, production, education, hospitality and food production sectors; provide N50,000 grants to an additional eligible 100,000 MSMEs; register 250,000 new businesses with the CAC at no cost to the MSMEs and support selfemployed individuals like mechanics, taxi drivers, hairdressers, Keke Napep riders, okada riders, plumbers, electricians, among others, with one-off payment of N30,000 each. “The plan is also geared towards stimulating direct local production in the 36 states of the federation and the FCT by enabling MSMEs in the production sector with funds to stimulate ‘post-COVID lockdown’ offtake products. “Worthy of note is the fact that the programme is to save over 1,700,000 jobs and special focus will be given to 45 per cent female owned MSMEs and 5 per cent special needs owned MSMEs. “The scheme comprises five tracks, namely Payroll Support, General MSMEs Grant, Formalisation Support, Artisan and Transport Grant, and the Guaranteed Off-Take Scheme.”