Explainer: How to qualify for FG's survival loan for small businesses

Explainer: How to qualify for FG's survival loan for small businesses

What is the Nigerian government doing to mitigate the mounting impacts of the coronavirus pandemic on Nigerians and their businesses?

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This is a question on the lips of many as the deadly virus has not only caused a global health crisis but also brought the global economy to its knee.

FG's MSMEs survival fund for businesses: How to qualify (Explainer)
Federal government announces survival fund for MSMEs. Photo credit: Femi Adesina
Source: Facebook

To answer the question, the Nigerian government has just announced two important social intervention programmes:

1. Guaranteed Off-take Stimulus Scheme (GoS)

2. The General MSME Grant

In this piece, Legit.ng will explain what the programmes are and walk you through how to benefit from them, in line with the information released by the federal government.

First, let us start with Guaranteed Off-take Stimulus Scheme (GoS).

1. Guaranteed Off-take Stimulus Scheme (GoS)

The GOS scheme is aimed at protecting and sustaining the incomes of vulnerable Micro and Small Enterprises (MSMEs).

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As the name implies, this is to guarantee the offtake of the products of the beneficiary companies. In other words, the target beneficiaries are the MSMEs that are ready to launch their products.

A total of 100,000 MSMEs are to benefit from the scheme.

How to qualify for GoS

If you want to apply for this scheme, below are the qualification criteria you must meet:

1. Applicant must be a Nigerian National.

2. Applicant must be registered under Corporate Affairs Commission with at least a Business Name certificate

3. Applicant must have a verifiable BVN and Bank Account

4. Applicant must have at least 2 staff

5. Applicant must be ready to produce under NAFDAC and SON specifications.

State-by-state breakdown of target beneficiaries

The total target national number of beneficiaries is 100,000. The breakdown is as follows:

1. Lagos - 3,880

2. Kano - 3,280

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3. Abia - 3,080

4. Other states - 2,640 beneficiaries

Target products under the GoS scheme

There are two categories of products to be captured under this scheme: Sanitization/cleaning and processed foods.

Category A

Sanitization and Cleaning

Lot 1 (Product)

1. Face Masks

2. Liquid Soap

3. Disinfectant

4. Hand Sanitizer

Category B

Processed foods

Lot 2 (Grains)

1. Beans

2 . Garri

3. Acha

4. Alkama

5. Brabusco

6. Rice (Parboiled)

7. Rice (Raw)

Lot 3 (Flour)

1. Yam Flour

2. Plantain Flour

3. Soya Bean Flour

4. Garin Danwake

5. Cassava Flour

Lot 4 (Oil)

1. Palm oil

2. Groundnut Oil

3. Coconut Oil

4. Honey

5. Soyabean Oil

Lot 5. (Spices)

1. Dry Locust beans

2. Curry Powder

3. Tumeric Powder

4. Ginger Powder

5. Garlic Powder

GoS take-off date

The GoS portal, where applicants will register, will open on Tuesday, February. The portal is www.survivalfund.gov.ng.

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General MSME Grant

As earlier stated, the second social intervention scheme for the MSMEs is General MSME Grant.

This is a one-off grant of N50,000 that will be given to each qualified MSME as direct cash injection into their business.

The total number of beneficiaries in this scheme is 100,000 spread across the states.

State-by-state breakdown of target beneficiaries

1. Lagos - 3,880

2. Kano - 3,280

3. Abia - 3,080

4. Other states (each) - 2,640

How to qualify for General MSME Grant

1. Applicant must be a Nigerian national

2. Applicant must be registered under Corporate Affairs Commission with at least a Business Name certificate

3. Applicant must have a verifiable BVN and Bank Account.

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Meanwhile, the federal government has announced that the Nigeria Youth Investment Fund (NYIF), being implemented by the Ministry of Sports and Youth Development, has successfully completed its pilot disbursement of loans totalling N165,700,000 to 239 beneficiaries.

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This was revealed in a tweet by the presidency seen by Legit.ng on Wednesday, February 3.

The government also revealed that it has processed over three million applications so far received from youths interested in the initiative.

Source: Legit.ng News

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