COVID-19: FG Launches N15 Billion Scheme For MSMEs
The Federal Government on Tuesday launched the Guaranteed Off-take Scheme, one of the tracks of the MSME Survival Fund Scheme under the Nigeria Economic Sustainability Plan (NESP).
N15 billion is expected to be spent on the scheme out of N2.3 trillion of the NESP, which was approved by the Federal Executive Council (FEC) on July 1, 2020.
At a press briefing,the Minister of State, Federal Ministry of Industry,Trade and Investment,Mariam Katagum, said the scheme was being implemented in line with the plan to rejuvenate the economy, especially MSMEs, in the manufacturing sector.
"The COVID-19 pandemic caused a drop in demand for corporate and household products and commodities in Nigeria just like it did in other parts of the world", she said.
She informed that the track had an initial target of 100,000 MSMEs across the country but by the time the portal closed, they had received a total of "65,976 applications across the country out of which we have verified and pre-qualified 50,032 MSMEs that we are presently processing to off-take their products."
Ms Katagum noted that the delay in implementing the scheme was to ensure that every State Government considered as key Stakeholders in the GOS are fully integrated and understand their roles
She also said that the Steering Committee wanted to ensure that due process is followed with the Bureau of Public Procurement BPP and logistics are put in place as close to each of the over 50,000 beneficiaries as possible.
The Minister further said that the scheme is giving preference to "products produced in reasonably sufficient volumes in each state which have proven propensity to create jobs and have a multiplier effect on the surrounding economy.
"It is important to note that the purpose of GOS is to stimulate direct local production by enabling 100,000 MSMEs in the production sector with funds to produce 'post COVID lockdown' off-take products.
"These products include: Face Masks; Hand sanitizers; Liquid Soap; Disinfectants and Processed Foods such as garri, palm oil, groundnut oil, and spices. We have successfully carried out a mapping of products produced in sufficient quantities in each state of the Federation and the FCT."
Requirements for Beneficiaries
The MSME survival project fund project coordinator, Tola Adekunle-Johnson, also at the briefing, said applicants will receive text messages and email requiring them to return to MSME Survival Fund portal to complete their documentation.
He said the applicants will have three days from the time they get the SMS/Email to log in and electronically complete all necessary documentation.
He instructed that they print a copy of their completed after documentation which will used to verify supply details at the Warehouse/Collection point.
Mr Adekunle-Johnson disclosed that each grant is N100,000 and those who complete documentation will receive N30,000 as mobilisation fee to commence production of their selected item and they have 14 days to finish and deliver to their selected Warehouse/Collection point.
At the point of delivery, NAFDAC will check for branding, packaging and quality control, a Project Delivery officer will check for actual quantity and Small and Medium Enterprises Development Agency of Nigeria (SMEDAN),contact persons will be responsible for primary contact management with applicants.
According to him, the scheme's process for an applicant will be complete when their items are successfully verified and received. Then they will be paid the remaining N70,000.
At the end of the scheme, items procured will be handed over to the State Governments for onward distribution to Schools, Hospitals, NGOs and public and private institutions.
"Only applicants who receive the SMS/Email are eligible to continue. The PDO call center will be available from 9:00am-5:00pm Mondays to Fridays on 07004000500", he added.