Nigerian government to recover 30% initial mobilisation from MSMEs defaulters

Nigeria Naira

The Federal Government, through the steering committee for the Survival Fund Scheme, has directed the appropriate agencies to commence recovery of 30% of initial mobilisation paid to Micro and Small medium Enterprises (MSME).

This was disclosed by a member of the steering committee of the MSME Survival Fund, Ubadigbo Okonkwo, during a town hall meeting with South East beneficiaries in Enugu.

He regretted that 19,928 MSMEs who was mobilised with an initial 30% for Guaranteed Offtake Scheme, GOS, but failed to supply the items, adding that they have seized the opportunity of mobilising other MSMEs willing to provide assistance to cushion the effect of COVID-19.

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He said “At the national level, we had some deviant cases, a total of 19,928 were MSMEs that were paid the initial mobilisation of 30% for GOS failed to supply the items; thereby negating the bonds they signed with the federal government.

“It should be noted that despite mass text messages, SMS, sent at least 3 times to the defaulters and the opening of a dedicated account at BOI for the refund of the initial sum, many of the said defaulters have failed to return the amount.

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“STEERCO has directed the appropriate agencies to commence the process of recovering such monies and possibly prosecuting the defaulters, as they have blocked the chances of other MSMEs that would have benefited from the scheme,” he said.

Okonkwo said the training was to highlight the scheme’s achievements in the zone and to receive beneficiaries’ feedback on all tracks of the scheme.

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According to him, the financial intervention of the government was borne out of the need to stimulate the economy post-lockdown, especially for small and medium-scale businesses.

He said “The COVID-19 pandemic caused disruptions in demand and supply chains, especially for corporate and household products and commodities. The Federal Government responded with the MSME Survival Fund and Guaranteed Off-take Scheme as its interventions to support micro and small businesses adversely affected by the pandemic.”

Source: Today Nigeria

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