President Bola Ahmed Tinubu has approved N50 billion for small businesses and promised workers that a new minimum wage will be announced.
Tinubu said this in his nationwide broadcast on the state of the economy while appealing to Nigerians to persevere in the current pains of the removal of fuel subsidy.
“Our administration recognises the importance of micro, small and medium-sized enterprises and the informal sector as drivers of growth. We are going to energise this very important sector with N125 billion,” Tinubu said.
“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 said the programme will further 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.
Tinubu 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,” Tinubu said. “Once we agree on the new minimum wage and general upward review, we will make budget provision for it for immediate implementation.”
Tinubu 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,” Tinubu said.
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