Osinbajo: FG has spent N462 billion to help MSMEs grow.

Ibekimi Oriamaja Reports

According to the Federal Government, it has spent N462,191,500,000 to promote the growth of Micro, Small, and Medium Enterprises (MSMEs).

Vice President Yemi Osinbajo explained how the money was spent, saying that “in the development of the Economic Sustainability Plan (ESP), some provisions were made to support MSMEs.”

“These include: a N250 billion grant with a N50 billion MSME de-risking facility component; a payroll support scheme providing up to N50,000 in monthly salaries for up to ten qualifying business employees for a three-month period – 1.5 million jobs have been retained through the MSME and payroll support.”

“Others include a one-time grant of N30,000 for 333,000 self-employed transporters and artisans under the Artisan and Transport Scheme; a N50,000 grant for 100,000 MSMEs; financial backing of up to N191 billion in loans to 34,144 MSMEs and capacity building of 125 MSMEs; and loan guarantees for 1,748 businesses totaling N6.2 billion.”

Professor Osinbajo made the announcement yesterday in Abuja at the Development Bank of Nigeria’s 3rd Annual Lecture Series.

The Vice President stated at the event, where he was represented by Finance Minister Mrs Zainab Ahmed, 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.”

Dr. Shehu Yahaya, Chairman of the Development Bank of Nigeria Plc, stated in his address that “significant changes are taking place; old certainties are being discarded, and new realities are emerging at an unprecedented rate, and Africa, and indeed Nigeria, must position itself to achieve growth and development despite the challenges faced.”

Mr Tony Okpanachi, Managing Director of the bank, stated that “in today’s increasingly turbulent world, MSMEs are frequently affected by unpredictable external factors such as natural disasters, climate change issues, disease outbreaks, technological and cyber changes, trade disputes, policies, etc, which have had an enormous impact on local businesses.”