FG earmarks N75bn for financing of 100,000 start-ups, MSMEs
By Matthew Denis
The Minister of Industry, Trade and Investment, Doris Nkiruka Uzoka-Anite has disclosed that President Bola Tinubu has earmarked a total of N75 billion for start-up businesses and Micro Small and Medium Enterprises (MSMEs) to boost economic activities in the country.
The Minister made the disclosure during his opening remark at the opening ceremony of the 18th Abuja International Trade Fair on Thursday.
She said, “This year’s theme is a very interesting one: Sustainable Financing and Taxation as Drivers for the New Economy. For many small businesses and MSME’s the thought of taxation is a scary one.
“The idea of paying tax from already tight profit margins is something that no business owner looks forward to. The issue in Nigeria however has always been one of accountability and ensuring that government use taxes received to improve the local business environment. The President understands business of all sizes who has raised in a family of traders, who started off with businesses very similar to those on display today. He has tasked me with ensuring that business like yours thrive.”
The Minister stressed that the government has announced a plan to support small businesses and startups in Nigeria in response to the country’s current economic challenges.
“We intend to spend N75 billion by March 2024 to strengthen the manufacturing sector. We also intend to provide small grants to micro businesses in each to the 774 local governments of the federation. We have also earmarked a fund of N75 billion that will be used to support up to 100,000 start-ups and MSMEs at single digital interest rates repayable over 36 months.”
According to her, “Last week they launched the National Technology Export (NATEP) programme, in partnership with Microsoft and earlier this year we launched the over $600 million Investment in Digital and Creative Enterprises (iDICE) program, in partnership with African Development Bank and other partners.”
She noted that empowering MSMEs is key to empowering youth and women and enabling them to contribute to the nation’s economic development. The growth of MSMEs has a positive impact on the economy as it enables individuals to support their families and add value. We all know the important role that trade plays in stimulating our economy and driving sustainable development.
“Through increased trade our goals of increased job creation, increased GDP, increased foreign exchange earnings and reduced insecurity are actualised. The development of export trade takes this a step further and helps our nation reach it’s economic diversification goals.
“As you are aware, Nigeria has signed and ratified the agreement establishing the African Continental Free Trade Area (AfCFTA). This agreement will dramatically boost intra-African trade and is expected to deliver an integrated continental market, consisting of 1.27 billion consumers. This is a great opportunity for Nigeria and I am pleased to see so many businesses here are already trading internationally. I also welcome those of you from across Africa that have come to Nigeria to participate in this fair.”
Mrs. Azuka-Anite reiterated that the private sector can help boost the demand for Nigerian products by aggressively pursuing value addition and increasing the quality of exported goods originating from our country. This trade fair is a great opportunity to showcase Nigeria’s capacity to produce to international standards and also to export.
“The public sector will continue to drive investment into infrastructure development, encourage access to low-cost financing, and provide fiscal incentives to companies wishing to manufacture products for sale. These incentives include: three to five years of tax holidays for enterprises in what we deem pioneer industries; tax-free operations and capital allowances for agriculture, manufacturing and engineering within our free trade zones.
”We can grasp the future of our country and create a hub that is open to all and become the gateway to Sub-Saharan Africa and beyond; A silk road whose impact shall reverberate though the land we currently stand on.
”I urge everyone at this trade fair and beyond to come together and grow value between us as we have a rare opportunity to work towards the transformation of our nation.”
Also speaking, The Executive Chairman of FCT-IRS, Mr Haruna Abdullahi stressed that the Trade Fair will enhance business interactions with stakeholders and business owners to tackle the challenges in the Economic sector.
He appealed to business entities to play their roles iin compliance as the Service will intensify its awareness and sensitisation efforts to ensure that their remittances are judiciously used to provide basic amenities.
