By Leshi Adebayo
The Federal Government, earlier this year, launched the Survival Fund Program targeted at individual artisans and small businesses. This scheme was adopted from the Economic Sustainability Plan (ESP) in response to the COVID-19 pandemic. The ESP was first passed in July 2020, highlighting 12 months of government spending in the 2021 fiscal year.
BlackBox Nigeria has highlighted below, basic information you need to know about the Survival Fund Scheme.
What is the MSME Survival Fund Scheme?
It is designed to support vulnerable Micro Small and Medium Enterprises (MSMEs) in order for them to meet up with their payroll obligations and safeguard jobs in the MSMEs sector.
According to PanAfricaninstitute.org, the scheme is estimated to save not less than 103 million jobs nationwide and directly impact over 35,000 individuals, in each state.
The intention of MSME Survival Fund
1. Stimulate direct local production nationwide including the FCT. This is achieved providing funds to stimulate post COVID-19 lockdown off-products for MSMEs.
2. Augment the payroll obligations of businesses in the Health, production, Education, Hospitality and Food production sectors.
3. Provision of ₦50,000 grants to an additional eligible 100,000 MSMEs.
What is the duration of the Survival Fund Scheme?
The scheme was implemented over an initial period of three months. This is to provide immediate relief from the economic impact of the pandemic.
Who are the focus/targets of the MSME Survival Fund Scheme?
1. Special focus will be given to 45% of female owned MSMEs,
2. 5% of Special needs owned MSMEs
3. The remaining 50% consisting of self-employed individuals especially service providers and artisans (electricians and plumbers.) The scheme is focused on two groups namely:
1. Employees of MSMEs
2. Self-employed individuals comprising of Service Providers and Artisans.
In what way will the MSME Survival Fund assist MSMEs?
The support is in three ways namely:
1. Payroll Support: Supports 500,000 thousand MSMEs in meeting payroll obligations of between 30 thousand Naira to 50 thousand Naira per employee over the period of three (3) months.
2. Formalisation Support: Provide free CAC business name registration for 250,000 businesses.
3. General Grant: Support the survival of 100,000 businesses most affected by the covid-19 pandemic with 50,000 Naira each.
What is the current status of the Survival Fund?On August 31, the Minister of State, Industry Trade and Investment, and Chairperson, Survival Fund Steering Committee, Ambassador Mariam Katagum, disclosed that the Federal Government has disbursed the sum of N56,842,780,000 to over 1,079,323 persons and businesses, which include businesses registered under the Corporate Affairs Commission (CAC).
According to the minister, the scheme started with 50,032 beneficiaries. The FG planned to receive 100,000 applications but only 65,976 were received at the time the portal closed. Out of the applications received, only the aforementioned 50,032 beneficiaries passed the pre-qualification tests.
The minister also stated that there was a record of success in the four schemes under the MSME Survival Fund namely:
1. The Payroll Support Scheme
2. The Artisan and Transport Scheme
3. The C.A.C Formalisation Support Scheme
4. General MSME Grant Scheme.
