The Nigeria COVID-19 Action Recovery and Economic Stimulus (NG-CARES) program has disbursed a total amount of N14.6 billion to 160,572 Small and Medium Enterprises (SMEs) in six northern states of Nigeria. The National Coordinator of NG-CARES, Abdulkarim Obaje, made this disclosure during a ministerial town hall meeting held in Bauchi. The NG-CARES program is part of the $750 million World Bank loan sourced in 2021 to assist the country to respond to the economic downturn caused by the COVID-19 pandemic.
According to Mr Obaje, each of the six beneficiary states was allocated $20 million while the Federal Capital Territory (FCT) and NG-CARES received $15 million each. The six states that benefited from the program are Bauchi, Gombe, Katsina, Jigawa, Kano and Plateau.
The NG-CARES program was created to cushion the pandemic’s adverse effects on SMEs and to provide economic stimulus. Small and medium-scale companies and peasant farmers who relied on daily subsistence income to survive benefited significantly from the program.
In his speech, Rev. Aso Vakporaye, Chairman of the Federal Care Technical Committee of N-G CARES, represented the Minister of State for Budget and Economic Planning, Mr Clem Agba. Rev. Vakporaye emphasized that COVID-19 has devastated many economies globally and that Nigeria implemented several policy measures to mitigate its impact on micro and small-scale businesses. He added that the Economic Sustainability Plan (ESP) was enunciated to mobilize funds and other resources, maintain macroeconomic stability, stimulate government revenues and reduce non-essential spending.
The NG-CARES program ensured that Nigeria accessed a World Bank concessional loan to increase household consumption among the poor and most vulnerable. The $750 million loan was accessed on behalf of all 36 states and the FCT to stimulate the local economy.
The NG-CARES program has assisted Nigeria in reducing the negative impact of the COVID-19 pandemic among SMEs. The initiative has been successful across the northern states in the country. However, it is essential to note that the government must remain committed to its plans to sustain the economic growth of the country.
