Federal government said that the Micro, Small and Medium Enterprises (MSMEs) were the most adversely affected sub-sector of the nation’s economy by the lingering Covid-19 pandemic.
Minister of State for Industry, Trade and Investment, Ms Mariam Katagum, who disclosed this during the 2020 world MSMEs Day virtually held on Tuesday, said the pandemic triggered severe adverse economic shocks to small enterprises.
She said, “Businesses have witnessed supply chain disruptions and low demand for products and services, which in turn have resulted in substantial revenue loss.
This has complicated the challenges of the vulnerable MSME sector, making the sector one of the most adversely affected by the economic fall-out of the pandemic.”
Katagum said MSMEs made up over 90% of all businesses in the world and accounted, on average, for 60 to 70% of total employment and 50% of Gross Domestic Product (GDP) worldwide.
In Nigeria, the recent survey conducted by National Bureau of Statistics (NBS) in conjunction with the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) showed that MSMEs sector employed about 76% of the nation’s labour force and contributes about 50% to the GDP.
To mitigate the impact of the scourge, the minister said “government has continued to explore interventions to cushion the effects of the economic downtime, especially on small businesses by providing palliatives to enable recovery, sustenance and improvements.”
She listed some of the interventions as including the ongoing implementation of Central Bank of Nigeria (CBN) Covid-19 Targeted Credit Facility (TCF) intervention fund of N50 billion as a stimulus package to support MSMEs and households; granting of three months moratorium for repayment of all government loans; and through the N2.3 trillion Economic Sustainability Plan (ESP), where government is planning to implement the Guaranteed Off-take Scheme and SME Survival Fund.
The minister explained that all these interventions had been designed to guarantee recovery and ensure stability of businesses within the immediate, short and medium terms.
Daily Trust