MSMEs Accessed N3.75bn Grant to Boost Liquidity, Formalise Operations

Dr. Olawale Fasanya, Director General/Chief Executive, Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), has disclosed that the sum of N50,000 was disbursed to 75,000 Micro Small and Medium Enterprises (MSMEs) under the Conditional Grant Scheme (CGS) which was launched in 2017 as part of efforts to ameliorate their liquidity constraints and to enable them formalise their operations.

Speaking at a media briefing to commemorate the World MSME Day in Abuja, the SMEDAN DG said that though faced with funding challenges, the agency remained ever committed to facilitating all resources required for the sustainable growth and development of the MSMEs in the country.

He called on both the public and private sector players to support in upscaling some of the interventions being implemented in their respective states, adding that  “It is time for us all to understand that we can develop faster and better when we come together”.

The funding intervention from the CGS came amid ongoing efforts by the government to migrate small businesses from the informal to the formal sector of the economy, in view of their significance to the economy.

He, however, pointed out that part of the conditions for accessing the N50,000 grant is the willingness of the informal nano and micro enterprises to become formal in operations.

According to Fasanya, other conditions involved capacity building, registration of the micro-enterprises with the Corporate Affairs Commission (CAC), and provision of microinsurance as well as the opening of bank accounts.

He noted that small businesses contribute about 48 per cent to GDP and 84 per cent to employment in the country, adding that they remained the backbone of the society, supporting livelihoods, especially for the working poor, women, youth and vulnerable groups.

He stressed that if adequately supported, MSMEs effectively contribute to the structural transformation of economies and drive inclusive, sustained, and equitable economic growth and jobs as well as critical components of the overall economy.