FG offers free company registration for 250,000 MSMEs

Posted by on Oct 20, 2020, Under: News

FG offers free company registration for 250,000 MSMEs

The federal government says it has offered free business registration to 250,000 micro, small and medium-sized enterprises (MSMEs) nationwide through its recently launched survival fund program.
This was announced by the State Minister of Industry, Trade and Investment, Amb. Mariam Katagum in an interview with the Nigerian News Agency (NAN) on Monday in Abuja.

According to her, the administration of President Muhammadu Bukhari, through the Committee on Economic Sustainability, has announced specific programs aimed at mitigating the impact of COVID-19 on MSME businesses.

“We convinced the Corporate Affairs Commission (CAC) to register 250,000 companies for free.

“In Nigeria, we have many such MSMEs, but they simply have never been formalized, and remain so, and some are exhausted because they do not have access to credit facilities.

“So part of that 250,000 business registration component, when you say free, is a project that pays off because CAC won’t do it for us for free.

“We also offer a 50% discount for other businesses wishing to register under it, so unless you are micro, small or medium, you will not get this free registration.”

Katagum said the federal government, through the Nigeria Economic Sustainability Plan (NESP), has initiated a nationwide implementation of the National MSME Survival Fund and guaranteed withdrawal schemes.

He explained that both programs are at the heart of the $ 2.3 trillion stimulus package, also known as the Nigeria Economic Sustainability Plan (NESP), implemented by the federal government.

“These programs include, among others, the $ 75 billion MSME Survival Fund and Guaranteed Withdrawal Schemes, which I am honored to chair the Steering Committee for Effective Project Implementation.

“The project, which will run for an initial period of three months, targets 1.7 million businesses and individuals and includes funds for 45% of women-owned businesses and 5% for businesses with special needs.”

The project stems from the federal government’s commitment to help mitigate the impact of the COVID-19 pandemic on the economy by preserving existing jobs and creating new jobs, she said.

The minister said other initiatives under the project include grants for craftsmen and transport, under which electricians, mechanics, plumbers, painters, taxi drivers and other craftsmen received grants.

He said the guaranteed withdrawal program is designed to protect and support the incomes of vulnerable MSMEs by ensuring that their products are collected.

He said the guaranteed withdrawal program provides subsidies to manufacturers of consumables such as hand sanitizers, face masks, liquid soaps, disinfectants and processed foods.

Katagum said wage support schemes support MSME wage commitments by paying between N30,000 and N50,000. E. A minimum of three to 10 employees within three months.

According to her, MSMEs in this category must have a minimum of three and a maximum of 50 employees in order to qualify.

He said they should work in the hospitality industry, in private schools, for factory owners, law firms and hospitals, among others.

Source: – NAS