In a significant development aimed at fortifying Micro and Small Medium Enterprises (MSMEs) and ensuring food security in Nigeria, the World Bank has granted a crucial extension. This extension comes as the nation continues to recover from the devastating impact of the COVID-19 pandemic.
The decision highlights the importance of sustaining economic growth and safeguarding the livelihoods of vulnerable populations.
The extension was announced by the Minister of State for Budget and National Planning, Prince Clem Agba, during a ministerial townhall meeting held in Benin City. The meeting brought together beneficiaries of the NG-CARES program from Edo, Delta, Bayelsa, and Rivers States. Prince Agba emphasized the urgency of supporting MSMEs and addressing the challenges faced by the country’s food supply chains.
The COVID-19 pandemic had far-reaching effects on economies globally, and Nigeria was no exception. The NG-CARES program was introduced to mitigate the adverse consequences on the nation’s MSMEs, which are crucial drivers of employment and economic growth. The program has been instrumental in supporting the formal and informal businesses that have been disproportionately affected by the pandemic.
During the ministerial townhall meeting, Prince Agba highlighted the critical role played by NG-CARES in maintaining livelihoods and creating new job opportunities.
He stated, “The effects of COVID-19 still live with us. That is where the NG-CARES program is still very apt. So we all recall that COVID-19, which ravaged many economies in the world, had devastating consequences on the livelihoods of the poor and vulnerable individuals, formal and informal businesses, especially the Micro, Small Enterprises.”
To combat the challenges posed by the pandemic, the Nigerian government disbursed N1 billion to each state, excluding Lagos, which received N10 billion due to its higher population and economic significance. Kano State also received additional funding to address its specific needs. Furthermore, the government has been actively pursuing a $750 million loan from the World Bank to provide comprehensive support to states across three key areas essential for economic recovery.
Recognizing the need for sustained assistance, the World Bank’s extension of the NG-CARES program until June 2024 is a significant milestone for Nigeria’s post-COVID recovery. The approval was welcomed by Prince Agba, who expressed his satisfaction and confirmed that an official letter would be received from the World Bank soon. The additional year will enable the program to continue empowering MSMEs, revitalizing the nation’s food security, and ensuring a resilient supply chain that can withstand future challenges.
Moreover, in anticipation of upcoming transitions of governors across the states, the Nigerian government has proactively addressed potential cash crunch issues. Prince Agba revealed that cash advancements would be provided to all 36 states, further demonstrating the government’s commitment to restoring livelihoods, ensuring food security, and facilitating the recovery of MSMEs.
