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SUCCOUR — Transport workers and operators to benefit from N10 billion survival fund … as FG provides 75 billion naira for youth entrepreneurs

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SUCCOUR —  Transport workers and operators receive a boost as FG announces N10 billion survival fund  A statement from the Federal Ministry of Transportation today revealed that ‘’the Minister of State,  Federal Ministry of Transportation, Sen. Gbemisola Saraki, has disclosed that Federal Government has approved a ten billion (N10 billion)  survival fund for transport workers and operators to help cushion the sufferings encountered by road transport workers and operators as a result of Covid-19 pandemic.

The fund is to help cushion the effect of COVID-19 on road transport workers and operators whose businesses requite a lifeline.  The fund is to help reduce the sufferings encountered by road transport workers and operators, who have been badly hit by months of being out of business during the lockdown period and restriction on interstate movements.

According to a press statement that was posted on the official Twitter handle of the Federal Ministry of Information and Culture, the Minister of State for Transportation, Senator Gbemisola Saraki, disclosed the news during a courtesy call by the National Executive Committee and Trustees of Public Transport Owners of Nigeria Association (PTONA). The delegates were led by PTONA’s President, Engr Isaac Uhunwagho, to her in Abuja.

 FEDERAL GOVT CHALLENGES YOUTH ENTREPRENEURS – PROVIDES 75 BILLION NIGERIAN YOUTH INVESTMENT FUND In a related development, provision has been made to cater for youths as a result of the impact of Coronavirus pandemic on various sectors of the economy. Nigerian Youth Investment Fund NYIF is a government initiative created to boost the Nigerian economy through leverage and access to finance for youths.

The fund hopes to serve as a catalyst to unleash the potential of the youth and enable many of them to build businesses that will increase the employment rate. The NYIF aims to reach 500,000 youth annually between 2020 and 2023. Each fund approval will range from N250, 000 to N50, 000,000, with a spread across group applications, individual applications, working capital loans set at 1 year and term loans set at 3 years with single digit interest rate of 5%.

Disbursement will be through various channels, which will include microfinance, finance firms and deposit money banks regulated by the Central Bank of Nigeria and supported by Bank of Industry. Start or grow your own business with the help of a government-backed loan and free business support. A great alternative for individuals looking for business loans to fund their business.

How to access new N75 billion Nigerian Fund

  • Approval will range from N250, 000 to N50million with a Youth Investment spread across group applications.
  • Nigerian Youth Investment Fund NYIF is a government initiative created to boost the Nigerian economy through leverage and access to finance for youths.
  • The fund hopes to serve as a catalyst to unleash the potential of the youth and enable many of them build businesses that will increase the employment rate.
  • The NYIF aims to reach 500,000 youth annually between 2020 and 2023. Each fund approval will range from N250, 000 to N50, 000,000, with a spread across group applications, individual applications, working capital loans set at 1 year and term loans set at 3 years with single-digit interest rate of 5%.
  • Disbursement will be through various channels, which will include microfinance, finance firms and deposit money banks regulated by the Central Bank of Nigeria and supported by Bank of Industry.
  • Start or grow your own business with the help of a government-backed loan and free business support. A great alternative for individuals looking for business loans to fund their business.

PROS

  • Low interest rate
  • Collateral free
  • CONS
  • Numerous documentation required
  • Existing viable business required

ELIGIBILITY CRITERIA

  • Official Government Identification
  • Applicant must be between the ages of 18 and 35 years old
  • Notarized Guarantor Forms
  • Passport photographs
  • Bank Verification Number
  • Training Certificate
  • Fundable business idea
  • Registered business
  • Nigeria Citizenship
  • NYSC certificate for graduates

 PRESIDENCY RESPONDS TO QUARTER 2, 2020 NBS FIGURES, The National Bureau of Statistics (NBS) published on Monday August 24, 2020, the 2nd Quarter (Q2) 2020 Gross Domestic Product (GDP) estimates, which measures economic growth. A statement released today by the presidency disclosed that Nigeria’s (GDP) declined by –6.10% (year-on-year) in real terms in the second quarter of 2020, ending the 3-year trend of low but consistently improving positive real growth rates recorded since the 2016/17 recession.

Consequently, for the first half of 2020, real GDP declined by –2.18% year-on-year, compared with 2.11% recorded in the first half of 2019.The overall decline of -6.1% (for Q2 2020) and -2.18 per cent (for H1 2020) was better than the projected forecast of -7.24% as estimated by the National Bureau of Statistics. The figure was also relatively far better than many other countries recorded during the same quarter.

Consequently, for the first half of 2020, real GDP declined by –2.18% year-on-year, compared with 2.11% recorded in the first half of 2019.The overall decline of -6.1% (for Q2 2020) and -2.18 per cent (for H1 2020) was better than the projected forecast of -7.24% as estimated by the National Bureau of Statistics. The figure was also relatively far better than many other countries recorded during the same quarter.

 Furthermore, despite the observed contraction in economic activity during the quarter, it outperformed projections by most domestic and international analysts. It also appears muted compared to the outcomes in several other countries, including large economies such as the US (-33%), UK (-20%), France (-14%), Germany (-10%), Italy (-12.4%), Canada (-12.0%), Israel (-29%), Japan (-8%), South Africa (projection -20% to -50%), with the notable exception of only China (+3%).

The government’s anticipation of the impending economic slowdown and the various initiatives introduced as early responses to cushion the economic and social effects of the pandemic, through the Economic Sustainability Programme (ESP), contributed immensely to dampening the severity of the pandemic on growth.

On the fiscal side, a robust financing mechanism was designed to raise revenue to support humanitarian assistance, in addition to special intervention funds for the health sector. Adjustments to the national budget as well as emergency financing from concessional lending windows of development finance institutions were critical in supporting governments’ capacity to meet its obligations.

On the monetary side, moratorium on loans, credit support to households and industries, regulatory forbearance and targeted lending and guarantee programs through NIRSAL were some of the measures implemented in response to the pandemic during the second quarter. It is equally worth noting that since the start of the third quarter, the phased approach to easing the restrictions being implemented centrally and across States have resulted in a gradual return of economic activity, including the possibility of international travel.

More importantly, the anticipated health impacts of the pandemic have been managed without overwhelming the health infrastructure, which would have further compromised the ability to re-open the country to travel, commerce and international trade. Indeed, this has provided greater confidence and ability for authorities to initiate the conduct of nationwide terminal examinations and resumption of the next academic year.

Finally, it is anticipated that while the third and fourth quarters will reflect continued effects of the slowdown, the Fiscal and Monetary Policy initiatives being deployed by government in a phased process will be a robust response to the challenges posed by the COVID-19 pandemic. Furthermore, as the country begins the gradual loosening up of restrictions, and levels of commercial activity increase by people returning to their various livelihoods and payrolls expand, it still remains imperative that all the necessary public health safeguards are adhered to so the country avoids an emergence of a second wave.

 

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