President Bola Ahmed Tinubu has approved N50 billion for Micro, Small and Medium-sized Enterprises, MSME’s, while also promising workers a new minimum wage.
The President, while addressing the nation in his broadcast on the state of the economy on Monday, appealed to Nigerians to bear the pains associated with the removal of fuel subsidy, assuring them that things would pick up.
“Our administration recognises the importance of MSME’s and the informal sector as drivers of growth. We are going to energise this very important sector with N125 billion.
“Out of the sum, we will spend N50 billion on Conditional Grant to 1 million nano businesses between now and March 2024. Our target is to give N50,000 each to 1,300 nano business owners in each of the 774 local governments across the country”, Tinubu stated.
The President further said the programme will drive financial inclusion by onboarding beneficiaries into the formal banking system.
He explained that the government plans to fund 100,000 MSMEs and start-ups with N75 billion under a scheme where each enterprise promoter will be able to get between N500,000 to N1million at 9% interest per annum and a repayment period of 36 months.
“To further ensure that prices of food items remain affordable, his administration had a multi-stakeholder engagement with various farmers’ associations and operators within the agricultural value chain, added.
The President disclosed that the Government is working in collaboration with the Labour unions to introduce a new national minimum wage for workers.
“I want to tell our workers this: your salary review is coming. Once we agree on the new minimum wage and general upward review, we will make budget provision for it for immediate implementation”, Tinubu said.
He commended members of the Organised Private Sector who have already implemented general salary review for employees to cushion the effect of fuel subisdy removal, a decision that has led to a spike in cost of food and transportation.
While acknowledging the harsh economic realities, Tinubu urged Nigerians to look beyond the present temporary pains and aim at the larger picture.
“All of our good and helpful plans are in the works. More importantly, I know that they will work”, he said.
