101,567 Beneficiaries Get Payroll Support From FG

The Federal Government has supported a total of 101,567 beneficiaries from 16,253 business under its payroll support scheme.

About 70,000 businesses in Nigeria had been shortlisted from the 432,000 businesses that applied for the Payroll Support from the Federal Government’s Survival Fund Grant Scheme.

The Payroll Support Scheme is a component of the Federal Government’s N2.3trn Economic Sustainability Programme aimed at kick-starting the economy by supporting businesses badly affected by the negative impact of the Coronavirus pandemic.

It is part of the initiative of the Federal Government to ensure that MSMEs survive the harsh operating environment which was caused by the economic downturn induced by the Covid-19 lockdown.

Figures obtained from the Ministry of Industry Trade and Investment on Friday showed that 101,567 beneficiaries from 16,253 businesses have received their first monthly payment from the Payroll Support Scheme.

It was learnt that the Federal Government will support small businesses to meet their payroll obligations of between N30,000 and N50,000 to cushion the economic effect of the Covid-19 pandemic.

A maximum of ten employees will be paid over a three months period.

The payroll support is part of series of intervention programme for the Micro, Small and Medium Enterprises sector.

The measures would assist the government to tackle the negative impact on the Coronavirus pandemic on the operations of MSMEs.

The programme, according to analysis of the plan would jointly be implemented by the Ministry of Finance, Budget and National Planning; and the Ministry of Industry, Trade and Investment.

Under the intervention, the Federal Government is expected to spend about N75bn to establish an SME Survival Fund to sustain at least 500,000 jobs in 50,000 SMEs.

Under this programme, the government would identify beneficiary small businesses in designated sectors, such as hotels, creative industries, road Transport, tourism, private schools and export-related businesses.

The initiative would also assist the goverment to identify, approve and disburse grants to beneficiaries through microfinance banks and financial
technology credit providers.