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MSME

FG disburses MSMEs Survival Fund in Lagos, Kano, FCT and 9 other states

The Federal Government commenced the disbursement of N30,000 one-time grant to 330,000 artisans across the country.

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Youth investment fund, FG disburses MSMEs Survival Fund in Lagos, Kano, FCT and 9 other states, Buhari gives reason for silence on Lekki Tollgate shooting, President Buhari approves N10 billion for National Census

The Federal Government has commenced the disbursement of N30,000 one-time grant to 330,000 artisans across the country. The grant was launched across Lagos, Kano, Abuja and nine other states, as the first batch.

This was disclosed by the Personal Assistant to President Muhammadu Buhari on New Media, Bashir Ahmad via his Twitter handle on Tuesday evening.

READ: FG rolls out N2.3 trillion survival funds for MSMEs; see criteria 

The grant, which is under the MSME Survival Fund, is part of the Nigerian Economic Sustainability Plan Initiated by the federal government on the 1st of July, 2020 to assist citizens and businesses operating in Nigeria.

He tweeted, “The first phase, which is tagged the Artisan/Transport Support Scheme, would focus majorly on 333,000 artisans for the beginning, which is 9009 from all the 36 states and the FCT and would then move to businesses operating in the transport sector at a later date.”

READ: Nigerian firm set to raise $1.2 billion to purchase electricity meters

Back story

Recall that Nairametrics had earlier reported that 174,574 people successfully registered for the N75billion MSME survival fund within 48 hours.

READ: AfDB approves $5 million for entrepreneurs under Tony Elumelu Foundation 

What they are saying

Corroborating the latest information, Ahmad said: “As the implementation of the Economic Sustainability Plan progresses, the payment of N30k one-time grant to 330,000 artisans across the country is now in progress with Lagos, Kano, FCT and nine more States in the first batch.”

Why it Matters

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The survival fund was designed to support vulnerable MSMEs to meet their different obligations and safeguard jobs in the sector.

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Chidi Emenike is a graduate of economics, a Young African Leadership Initiative Fellow and an Investment Foundations certificate holder. He worked as a graduate Teaching Assistant in the Federal College of Education Kano and is also a trained National Peer Group Educator on Financial Inclusion

8 Comments

8 Comments

  1. Abubakar Sadiq Ahmed

    October 28, 2020 at 6:35 am

    It seems to be good to publish the name of the beneficiaries with their phone number, this will enable those who have not given to lodge their complaint,outright.

  2. EASY IZIBA OKANEZI

    October 28, 2020 at 7:18 am

    What are the names of the”9 other states”? Why are they hiding these facts? Is there no space to contain the names of these “9 states”?

  3. Kabiru ya'u

    October 28, 2020 at 7:28 am

    God GRES the federal government of Nigeria

  4. Anita oguntayo

    October 29, 2020 at 11:21 am

    For your Registration for the Federal government survival Funds
    Call Mr Adams on 08094575582

  5. David

    October 29, 2020 at 4:46 pm

    How can someone register ongoing youth investment fund, I means the links (website)

  6. Irumeh Martins

    October 31, 2020 at 9:03 pm

    I will love to be among those who are benefiting from this because am youth of dis Nigerian

  7. Jakes

    November 1, 2020 at 8:59 pm

    List the other nine(9) states na

  8. Anonymous

    November 1, 2020 at 10:00 pm

    Gladys
    Please let us see the names of the nine other states .

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Columnists

How MSMEs can get easy access to finance

MSMEs must take the following steps for loan readiness.

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How MSMEs Can Get Easy Access to Finance

MSMEs are considered the backbone of the Nigerian economy. In 2019, they made up 90% of all registered businesses, contributed more than 50% of the country’s nominal GDP, and employ 84% of its labour force. Despite this, MSMEs were the recipients of less than 5% of all credit granted by the banking industry.

One reason for this is self-selection by MSME owners. Many MSMEs refuse to apply for loans from banks due to a fear of rejection and a belief that banks charge exorbitant fees and request hefty collateral before giving loans to MSMEs. Now more than ever, in this era of cashflow-based lending and low-interest rates, this harmful myth is costing businesses access to finance that they need to scale.

Another reason is the MSMEs’ lack of loan readiness. Unlike large companies, small business owners do not prepare themselves before applying for loans. This causes them to make many mistakes that discourage banks from lending to them due to a fear of non-repayment.

In order to overcome this hurdle and join large businesses in taking advantage of the low-interest climate, MSMEs must take the following steps for loan readiness:

1. Maintain financial records – Research shows that 69% of MSMEs in Nigeria do not keep detailed financial records. As a business owner, you must ensure that funds pass through your business account. Your business’s financial records as reflected in your bank statement will help your bank determine your repayment capacity. This is important, whether you want a collateral-free or collateral-based loan.

2. Use narrations for transfer into personal accounts – Again, always use your business account for business funds. However, if funds must be paid into your personal account for any reason, then ensure that those payments have a narration that reflects the purpose of the payment. For example, Two shirts purchased. This helps isolate business funds from personal when computing your turnover in order to determine your loan amount and repayment capacity.

3. Know what you want – Always know exactly how much you want and what you want it for. If your account officer asks you how much you want and you say “any amount you can give me”, they automatically assume you have no plan for the money or a plan for repayment. Before approaching your bank, determine how much you need and how much you can repay per month, using your monthly income.

4. Have a repayment plan – Always have a plan for repayment. Know how much you can afford to part with per month. Note however that your repayment plan might not align with that of the bank. Banks prefer not to take more than 33% of your monthly income in loan repayments, so your loan repayment period will probably be dependent on how much you can pay per month. Regardless, a well-thought-out repayment plan will build confidence in your repayment ability.

5. Engage your account officer– It is important to have an engagement with your account officer before applying for the loan. Instead of just writing a loan application letter to the bank and waiting for a response. Armed with your financial statement and your knowledge of how much you need and for how long, visit your account officer and have them work with you in getting your loan.


Ese Atakpu is a writer and banker.

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Commodities

AFEX raises $50 million to Finance Agri-SMEs in Nigeria

The $50 million Agri-SMEs fund is expected to bridge the funding gap between lenders and borrowers in the agric sector.

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AFEX to partner with FMDQ and Dubai Commodities Exchange, 50,000 farmers to benefit from AFEX Commodities agric funding initiative

AFEX Commodities Exchange Limited (AFEX), a private commodities exchange company, has announced the first Warehouse Receipt Backed Commercial Paper in Africa. The paper has tech-enabled operations and a 24-hour fast cash turnaround for borrowers.

This was disclosed by AFEX in a statement issued and seen by Nairametrics on Thursday.

The $50 million Agri-SMEs fund is expected to bridge the funding gap between lenders and borrowers in the Nigerian agricultural sector with a commodity-backed instrument – for the first time.

READ: AFEX partners FMDQ, Dubai Commodities Exchange to deepen markets opportunities

Ayodeji Balogun, CEO, AFEX, stated, “The AFEX financing deal will help eradicate the high cost of procurement incurred by processors by deploying a discounted value of a warehouse receipt distributed among five leading players in the Food and Beverage, Trading Poultry and Animal Feed segments in Nigeria.

“The receiving companies are top 10 players in their respective segments. They have now been enabled access to a tool for managing price volatility, enabling up to 30% direct savings on prices.

“With our vision to reach a cumulative total of over $5 Billion in investment to the agriculture sector over the next five years, this financing deal is right on track to achieve this goal.’’

He added that as AFEX move towards building a derivatives market in Africa, “we want to be able to reduce exposure to price risk for stakeholders, by enabling them to hedge their positions and trade in commodity derivatives.”

READ: CBN to increase loans to agricultural sector to 10% of total bank credit

Why it matters

  • The warehouse receipts, which can then be transferred from commodities to a financial asset and listed under the borrower’s portfolio on the AFEX trading platform, will create a sustainable funding structure and address underfunding in the Nigerian agricultural sector.
  • With the warehouse receipt system linked to financiers, the system allows financiers value and marks the commodities’ price to market on a real-time basis.

What you should know

  • AFEX’s mission is to provide low-risk working capital facility for stakeholders in the Agro sector, in a way that is transparent and has a very high viable investment return.
  • As a licensed commodities exchange and warehouse receipt system operator, it deploys a warehouse receipt system and collateral management infrastructure to increase market confidence for both lenders and borrower.

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