how to apply survival fund Nigeria
Nigeria’s federal government has launched a $194.8 million (₦75 billion) conditional grant facility to support vulnerable Micro and Small enterprises in meeting their payroll obligations and safeguard jobs in MSMEs from the shock of the COVID- 19 pandemic. The scheme is estimated to save at least 1.3 million jobs across the country while targeting an average of 35,000 individuals per state.
“Nigerians interested in the Payroll Support scheme are to note that the site for registration will be open from 10 pm Monday, September 21, 2020,” a statement released by Nigeria’s Project Delivery Office noted.
“In order to ensure a seamless registration process, the Project Delivery Office (PDO) has designed a registration schedule.
“Registration for Payroll Support will start with educational institutions on Monday and will be followed with businesses in the hospitality industry on Friday, September 25 beginning from 12 A.M.
Here Is What You Need To Know
Which Businesses Are Targeted?
While the scheme aims to target at least 35,000 individuals in each of Nigeria’s 36 states, the Survival Fund aims particularly at two categories of beneficiaries namely:
- Employees of MSMEs (called the Payroll Support Scheme): Under this, the scheme will support 500,000 vulnerable MSMEs in meeting payroll obligations of between ₦30,000 to ₦50,000 per employee over 3 months.
- Self-employed individuals such as service providers in the transportation sector, i.e. Bus drivers, Taxi drivers, Ride share drivers, (Uber, Bolt Taxify etc) and Mechanics; Artisans, Electricians Plumbers etc; Under this, the scheme will provide 333,000 artisans and transport business operators with a ₦30,000 operations grant to reduce the effects of income loss.
- The scheme will also support the survival of 100,000 businesses most affected by the COVID-19 pandemic with ₦50,000 each.
For all schemes, 45% preference for female business participation and 5% for special needs participation have been made.
What Is The Duration Of The Scheme?
According to Nigeria’s minister of state for industry, trade and investment, Mariam Katagum, the programme would run for an initial duration of three months.
What Qualifies Your Business To Apply?
To able to apply for the facility, the following requirements must be met.
For Employees of MSMEs. The benefiting companies must meet the following criteria:
- Employees’ company Must be registered in Nigeria under the Corporate Affairs Commission, CAC.
- Must have BVN by company CEO.
- Must have a staff strength of no less than 3 persons
- Must be owned by a Nigerian.
Apart from assisting the qualifying companies to meet their payroll obligations of between ₦30,000 to ₦50,000 per employee over 3 months, the businesses may also get up to ₦50,000 each.
For Self-Employed Individuals:
They must:
- Be Nigerian citizens, holding valid identification cards.
- Hold licenses from relevant organisations and government agencies.
- Must have BVN, among other criteria to be found on the application portal.
They may get up to ₦30,000 each in operations grant to reduce the effects of income loss.
how to apply survival fund Nigeria how to apply survival fund Nigeria
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Are There Other Criteria Not Stated Here?
More information is available on the application portal upon the commencement of the application.
When Is The Application Process Starting And Closing?
- Application is online and will be done in phases. For interested Nigerians in the Payroll Support scheme (that is, employees of SMEs), applications open from 10pm Monday September 21, 2020.
- However, under the Payroll Support Scheme, educational institutions were given priority, and so applications all educational institutions looking for funds to pay their employees’ salaries will start applying from 10pm on Monday Sept 21, 2020.
- This will be followed by businesses in the hospitality industry on Friday September 25 beginning from 12am.
- The portal will also be open to other category of small businesses from 12am, on Mon Sept 28, 2020.
- The scheduling of registration for prospective beneficiaries is to ensure that the process is seamless & hitch free.
What Happens If Your Business Applies Outside Its Allotted Time And Date?
The applications may not be treated.
When Is The Application Process For Individual Beneficiaries Starting?
No official statement has been released to this effect, but more information may be available on the application portal upon the commencement of the application.
Who Are Small and Medium Scale Businesses In Nigeria?
According to SMEDAN Nigeria:
- Micro Enterprises in Nigeria are those enterprises whose total assets (excluding land and buildings) are less than Ten Million Naira with a workforce not exceeding ten employees.
- Small Enterprises are those enterprises whose total assets (excluding land and building) are above Ten Million Naira but not exceeding One Hundred Million Naira with a total workforce of above ten, but not exceeding forty-nine employees.
- Medium Enterprises are those enterprises with total assets excluding land and building) are above Fifty Million Naira, but not exceeding One Billion Naira with a total workforce of between 50 and 199
employees.
How Do You Apply For The Fund?
Eligible businesses and individuals can apply by visiting https://survivalfund.ng/
Applications open Monday 21st September; 10pm Nigerian Time, according to the specifications stated above.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer