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COVID-19: Why Lagos, Kano, Abia will get more beneficiaries from N75bn survival fund – Presidency

 

The Presidency on Sunday disclosed that Lagos, Kano and Abia States would get more beneficiaries from the Economic Sustainability Plan, ESP, N75 billion MSME survival fund distributed across the states.

 

The disclosure was contained in an updated report of the Federal Government on the implementation of the survival fund scheme.

 

Spokesman to the Vice President, Yemi Osinbajo, Laolu Akande explained that Lagos, Kano and Abia States had more MSMES activities in their states than the rest.

 

In a statement he sent, Akande said: “While Lagos, Kano and Abia will get slightly higher numbers of beneficiaries, all other states and the FCT will get an evenly distributed share of the Economic Sustainability Plan’s (ESP) N75 billion MSMEs Survival Fund.

 

“Lagos, Kano and Abia had more MSMES activities in their states than the rest and this explains why they got slightly higher numbers of beneficiaries.”

 

The report disclosed that the Steering Committee led by the Minister of State for Industry, Trade and Investment, Amb. Mariam Katagum is 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 operationalization of the schemes in communities within the states.

 

A detailed distribution procedure for the five tracks under the survival fund is as follows:

1.Payroll Support – Lagos gets 25, 000 beneficiaries; Kano, 17,000; Abia, 16, 000; other states 13, 000 each

2.General MSME Grants – Lagos, 3, 880; Kano, 3,280; Abia, 3,080; other states , 2,640 each

3.Free CAC registration – Lagos, 9,084; Kano, 8, 406; Abia, 7, 906; other states 6,606 each

4.Artisan & Transport Grants – 36 States and FCT , 9,009

5.Guaranteed Offtake Stimulus Scheme (MSMEs) – Lagos, 3,880; Kano, 3,280; Abia, 3080 and other states 12,640 each.

 

The report indicated that Abia, Lagos and Kano 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.

 

The report allays any fears of marginalization 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 indicated that “66% of the total number of registered potential beneficiaries are male artisans while 34% are female artisans.

 

“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 Corporate Affairs Commission (CAC) at no cost to the MSMEs; and Support self-employed individuals like Mechanics, Taxi Drivers, Hairdressers, Keke Napep Riders, Okada riders, plumbers, electricians etc with one-off payment of N30,000 to each of them.

 

“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; off-take 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% female owned MSMEs and 5% special needs owned MSMEs.”


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