“There is so much to learn from the Vice President”—Ebonyi Gov
Impressed by the steady progress made in the Micro, Small and Medium Enterprises (MSMEs) sector, the Federal Government is ramping up efforts and incentives, including the Finance Act 2020, to further boost development in the sector across the country, according to Vice President Yemi Osinbajo, SAN.
Prof. Osinbajo stated this on Thursday in Abakaliki at the rerun version of the MSMEs Clinic in Ebonyi State, which is the 27th in the series.
Speaking after an inspection of products exhibited by MSMEs in the state, the Vice President said in its effort to solve challenges for and champion the interest of small businesses across the country, the FG will continue to improve the initiatives that are aimed at supporting MSMEs.
According to him, “Small businesses, we all know, are the engines of growth of our economy and this is not mere rhetoric. It is a proven fact. This explains why the Federal Government has worked consistently to enable businesses. These efforts are evident in our Ease of Doing Business reforms which continue to be celebrated not just locally but internationally.
“Aside from that, we have a whole new Finance Act, many of us are familiar with the fact that the Finance Act 2020 introduces a wide range of tax incentives for small businesses and that Act was signed into law on January 13th this year.
“The principles in the Finance Act have given concrete expression to what we intend to achieve. Notably, the Finance Act completely exempts small companies with a turnover of less than N25m a year from Companies Income Tax.
“For businesses between N25 million to N100 million a year, they will now pay Companies Income Tax at a significantly lower rate of 20%, (from the previous 30% rate).
“In a similar vein, the Act now makes it clear that services provided by micro-finance banks are exempted from VAT.”
Speaking further on additional incentives aimed at enhancing growth in the MSMEs sector, Prof. Osinbajo said “some of these initiatives include; the recently approved $20 million Technology Fund which is run by the Bank of Industry to support young innovators and the technology ecosystem; the N90 billion fund which is provided by the CBN through the National Micro-finance Bank for agriculture-based MSMEs and the entire agro value chain. These are not just farmers but all those involved in the agro-value chain are eligible for the N90 billion soft loan which the CBN is now rolling out.”
Continuing on some of the new incentives to support MSMEs growth, the Vice President said “the roll out of NAFDAC’s e-registration platform and a 75% cost-reduction for product registration is a great opportunity for registering products just at 25% of what it used to cost to register products.”
“There is also a partnership between Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and the Corporate Affairs Commission (CAC) to register MSMEs en-masse and build a comprehensive database to help plan, coordinate, and deploy policy responses to some of the challenges our small businesses face.
“These are just a few of the initiatives to ensure an empowering and inclusive business environment. We will do our part, but we must work together at all levels, Local, State, and Federal to ensure that our small businesses thrive,” the Vice President added.
Speaking on harnessing the gains of the National MSMEs clinics, the Vice President noted that effective collaboration amongst stakeholders including governments at all levels, civil society organisations and others, would enhance sustainable growth in the sector.
Earlier in his remarks, Governor David Umahi of Ebonyi State commended the Vice President’s unique and exemplary leadership and commitment in ensuring the success of several Federal Government initiatives.
According to him, “I watch Mr Vice President, there is so much to learn from him, his leadership qualities are inelastic. I have never seen him angry even when we governors carry our personal pressures to him at NEC. There is so much to learn from you leadership qualities, your Excellency.”
Other dignitaries present at the event include: the former Governor of Ebonyi State, Mr Martins Elechi; the State Deputy Governor, Barr. Eric Igwe, members of the State House of Assembly, heads and representatives of Federal Government agencies, amongst others.
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