FG Ensures Accuracy, N200bn Palliative Allocation for Small Businesses

The Federal Government is diligently compiling precise data on eligible businesses to access the N200 billion palliative earmarked for this purpose through the Small and Medium Enterprises Development Agency (SMEDAN) in order to fulfil President Bola Tinubu’s pledge to provide financial relief to SME (small and medium-scale enterprises) affected by economic challenges.
SMEDAN has taken the initiative to update the data that is already available, ensure that duplicates are removed, and carefully distribute monies to the intended recipients. This endeavour is a component of a larger plan to assist the manufacturing industry and lessen the negative effects on small firms of the elimination of fuel subsidies and the harmonisation of currency rates.

On July 31, President Tinubu revealed plans for a palliative allocation of approximately N75 billion between July 2023 and March 2024 to support the manufacturing industry in a national broadcast. By supporting 75 firms with high potential, the funds are meant to jump-start sustainable economic growth, speed up structural reform, and increase productivity.

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The Director General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, among other stakeholders, are concerned that the government has yet to begin the disbursement of cash despite the President’s order. He voiced his concerns on the delay, calling it “worrisome” for the business community.

SMEDAN’s Director General, Fasanya Olawale, gave assurances in an exclusive chat with our correspondent in response to these worries. Olawale emphasised the government’s dedication to making sure that the financial facilities are distributed on time. He explained that their goal is to contact businesses in all 774 local governments and every nook and cranny of the nation in addition to quickly disbursing the funds.

The government’s rigorous approach to gathering precise data demonstrates its commitment to openness and equity in the allocation process. The nation keeps a careful eye on these measures as businesses eagerly anticipate the promised financial support, anticipating the positive effects these programmes will have on the struggling small and medium-sized firms, ultimately promoting economic growth and stability.