Post-Covid-19: Obaseki Set To Assist Small, Medium Scale Businesses ln Edo
...As 750 Million Dollars Earmark For Programmes In Nigeria, Over 3 Billion In Edo
Ehichioya Steve Odion
In an effort to give full support to the business operators in the state, the Permanent Secretary of the Ministry of Wealth Creation, Cooperatives and Employment Joel Edionwe has disclosed that the Edo State governor, Godwin Obaseki is eager to assist micro, small and medium scale businesses in the state to help them revive their businesses, as a result of the effects of Covid-19 crisis cause on them.
Edionwe made this disclosure when addressing journalists in his office,adding that the programme is designed to enable the citizens recover from the Covid-19 pandemic loss.
Joel Edionwe, revealed that the total amount of funds to be used to run the entire programmes for two years, from 2021 to 2022, in Nigeria is 750 million dollars.
He said, for the Results Area 3, in Edo state, the amount is over 3 billion naira, and added that the 36 States, in the Federal Republic of Nigeria collect from the 750 million dollars in all the intervention programmes.
" This programme is an intervention programmes, between the World Bank, Nigeria, and by extension the Edo State government. The programme is to reduce the effects of Covid-19. Is a stimulus or stimulant for the people. It covered three areas. They are livelihood programme, food security programme and other programmes. "
"The programme is called Result Area 3, which covered Small and Medium Scale Enterprises or busineses, with post Covid-19 package for stimulus areas. The Result Area 3 is also sub divided into three areas. Which means; Disbursement Linked Initiative ( DL1). The initiative must be back up by the actual disbursement."
" The programme is designed in such a way that the Edo State Government is the one given grants to Businesses that were affected by Covid-19, to help the businesses recovered. From the Edo State Government to the people, the money is called grants. From the World Bank to Nigeria, and to the state government is called loans."
" The programme is operating in a platform called P for R. Is a frame word. The P stands for performance and R stands for Result. If you say you have perform. Show us the evidence of your performances. What the World Bank does is to allow us run this programme. And do an independent verification to enable us ascertain the results."
" If the results are confirmed, the World Bank comes back to reburse the money to the state government spend on these various programmes and initiatives. We are going to work to address specific stimulant for different areas for enterprises, businesses and shops, affected by the Covid-19. The DL1 talked about loans support for small and medium enterprises."
" The pandemic affected a lot of people. Businesses were locked down, people were sacked and relief of their jobs. Some took loans borrowed with interest in banks. Many of them cannot even pay back the capital, not to talk of paying the interest."
" The initiative is designed to give 40% loans recovery assistance to those businesses and enterprises. What we are saying is that those who had some of the loan running, and was affected by Covid-19 could not pay back. This programme will support them 40% to ensure the repayment."
"The 40% is not a fix amount and is going to run in category. For example, those who have loan of 500, 000, you don't expect their 40% to be the same as those who have a loan of five million. So, is categorize as what we are to get from the Edo State Government. Is a grant to enable them pay back 40% of the outstanding liability".
According to the Permanent Secretary, the DL2 is to support small and medium enterprises to reduce the cost of operations. The focus of government is wealth and Job creation.
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