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Support for Micro, Small and Medium Enterprises: The Administration has launched a series of funding and capacity development initiatives designed to support MSMEs:
The new Development Bank of Nigeria (DBN) has finally taken off, with initial funding of US$1.3 billion (N396.5 billion); to provide medium and long-term loans to MSMEs.
Since 2017, the DBN has disbursed a total of N100 billion through the bank’s 27 Participating Financial Institutions (PFIs) impacting more than 100,000 MSMEs.
52% of loans disbursed in 2019 were to youths and women-owned businesses.
Bank of Industry has disbursed more than N400 billion in loans to large, medium, small, and micro-enterprises since 2016.
It has also established an N5 Billion Fund for Artisanal Miners, as part of the Federal Ministry of Mines and Solid Minerals Development’s Programme to boost Mining activities in Nigeria; as well as a $20 million fund to support young technology entrepreneurs in Nigeria
The MSME Clinics, which bring relevant Government Agencies together with small businesses operating in various cities across the country, to enable the Agencies to provide direct support to these businesses. The interactions allow the Agencies to better understand the issues facing small businesses and provide a platform for speedy resolution.
The Ease of Doing Business Reform Programme (see below)
The Government Enterprise and Empowerment component (GEEP) of the Social Intervention Programme (SIP)
Ease of Doing Business Reform Successes:
The work of the Presidential Enabling Business Environment Council (inaugurated by President Buhari in August 2016) and the Enabling Business Environment Secretariat (EBES) has resulted in Nigeria moving up 39 places on the World Bank’s Ease of Doing Business rankings since 2016. In the last 3 years, Nigeria has twice been adjudged one of the 10 Most Improved Economies in the Rankings.
The Nigerian Investment Promotion Council (NIPC) in 2017 completed a long-overdue revision of the list of activities that can benefit from Nigeria’s Pioneer Status Incentive, which grants beneficiary companies a 3 to the 5-year tax holiday. The revision, done more than 10 ten years after the last one, has modernized the List, expanding the tax holiday incentives to qualifying companies in E-commerce, Software Development, Animation, Music, Film and TV.
NIPC published a Compendium of all Investment incentives in Nigeria, making it easier for existing and potential investors to have equal access to the information.
Some of the specific Ease of Doing Business Reform achievements are as follows:
Assent by President Buhari to the Finance Bill, 2019. The Finance Act, 2019 is the first time Nigeria is accompanying the passage of a Budget with complementary fiscal and business environment reforms legislation. The 2020 Budget is also the first time in 12 years that a Federal Budget has been restored to the January-December cycle.
Creation of a National Collateral Registry (NCR). An NCR or Movable Assets Registry was established by the Central Bank of Nigeria, in May 2016. The NCR allows small businesses to get access to loans using movable assets – machinery, livestock, inventory – as collateral. As of the end of June 2018, the NCR online portal had registered 630 financial institutions. Between inception in 2016 and April 2020, these financial institutions had recorded a total of 65,370 moveable assets on the portal, belonging to 165,456 borrowers, and valued at 1.26 Trillion Naira
Automation of business name reservation, submission of registration documents, payment of registration fees, generation of Tax Identification Numbers (TIN), and filing of federal taxes.
Implementation of a functioning Visa-on-Arrival system for Business Visitors and AU nationals.