Part of the economic sustainability plan by the government for the post-pandemic period plans to save the tech eco-system in Nigeria and also provide a million tech jobs for unemployed graduates in Nigeria.
It is obvious that Startups and SMEs have been greatly affected by the pandemic and it has made a lot of startups take critical decisions such as shutting down and retrenching their staff, while others are desperately looking for investments to make sure their businesses do not shut down totally.
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According to a recent report by the United Nations (UN), the pandemic which has led to various activities been put on hold will see 13 million jobs at risk in 2020. A survey also from the National Bureau of Statistics (NBS) also supported this claim. According to the survey carried out by NBS, out of 1,950 households, about 42% of the respondents reported losing their jobs due to the pandemic.
In order to cushion the effect for startups and Nigerians generally, the Nigerian government plans to activate the provisions of the recently signed Finance Act for Startups and MSMEs. This is in line with the sustainability plan. The Act exempts small startups and MSMEs, with turnover less than #25 million or $64,516 a year from paying any tax. It also reduced rates for medium businesses to 20%.
The government is also planning to establish an SME Survival Fund to sustain at least 500,000 jobs in 50,000 SMEs. The government will also be targeting businesses that are in critical conditions such as hospitality, creative industries, road transport, tourism, and schools. The government plans to disburse #50 billion payroll support in order to save employees from being sacked, while a separate #10 billion will be granted to private transport companies and its workers.
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The government is also planning to provide jobs by training youths in areas such as entertainment, financial services, e-commerce, and education among others. While we wait, let’s pray and hope this proposition comes to reality.
