2024 Budget: What It Holds For Small Business Owners

The Federal Government released its 2024 Budget of Renewed Hope on November 28, 2023.

What are the programmes and policies in the 2024 budget that are targeted to Small Business Owners and Micro, Small and Medium Enterprises?

How can Small Business Owners take advantage of these programmes and policies to start, grow or scale their businesses?

The 2024 Budget, presented to the National Assembly and the Nigerian people by President Bola Ahmed Tinubu, aims to address critical economic challenges and foster sustainable growth in Nigeria.

The budget seeks to prioritise macroeconomic stability, human capital development, poverty reduction and enhanced security. These initiatives are designed to foster job creation, economic growth and develop a culture of entrepreneurship.

Among its key initiatives, the budget outlines several programmes and policies specifically targeted towards supporting Micro, Small and Medium Enterprises (MSME) in the 2024 budget year.

The range of programmes and policies contained in the 2024 budget, designed to empower Small Business Owners and MSMEs, include:

1. Micro, Small and Medium Enterprises Development Fund (MSMEDF):
   • Purpose: To provide financial assistance to MSMEs in various sectors, including agriculture, manufacturing, services, and trade.
   • Allocation: N250 billion.
   • Eligibility: Micro businesses, small businesses and medium enterprises.

This fund will provide loans to MSMEs at an interest rate of 5%.

2. Youth Entrepreneurship Development Programme (YEDP):
   • Purpose: To empower young entrepreneurs through training, mentorship and access to finance.
   • Allocation: N50 billion.
   • Eligibility: Youths between the ages of 18 and 35 with viable business ideas.

3. Government Enterprise and Empowerment Programme (GEEP):
   • Purpose: To provide micro-loans to petty traders, artisans and other micro-enterprises.
   • Allocation: N100 billion.
   • Eligibility: Petty traders, artisans, and other micro-enterprises.

4. Women Entrepreneurship Fund (WEF):
   • Purpose: To provide financial support to women-owned businesses across various sectors.
   • Allocation: N50 billion.
   • Eligibility: Women-owned businesses.

5. Infrastructure Development For MSMEs:
   • Purpose: To improve infrastructure and access to utilities for MSMEs, such as electricity, roads, and internet connectivity.
   • Allocation: N150 billion.

6. Skill Acquisition And Vocational Training for MSMEs:
   • Purpose: To enhance the skills and competencies of MSMEs through training and vocational programmes.
   • Allocation: N50 billion.

7. Public Procurement Preference For MSMEs:
   • Purpose: To mandate government agencies to prioritise procurement from MSMEs, ensuring they receive at least 40% of procurement contracts.

8. Industrial Clusters Development Initiative (ICDI): The ICDI promotes the development of industrial clusters, fostering collaboration and innovation among MSMEs.

9. One Enterprise Per Local Government (OPLAG): The OPLAG initiative aims to establish at least one viable enterprise in each Local Government Area across Nigeria.

10. Tax Incentives For MSMEs: The budget provides tax incentives for MSMEs, including reduced tax rates and exemptions.

11. Access To Market For MSMEs: The government will facilitate access to markets for MSMEs through trade fairs, exhibitions and online platforms.

12. Business Registration and Licencing Reforms: The budget aims to streamline business registration and licencing processes for MSMEs.

How Small Business Owners Can Take Advantage Of These Programmes

How can you, as a Small Business Owner, take advantage of the programmes and policies in the 2024 budget to start, grow or scale your business?

A Small Business Owner can explore any or a combination of these programmes:

1. Business Finance: Take advantage of the MSMEDF and similar financing programmes to access affordable capital for your business needs. If you are an MSME, you can apply for a loan from the MSME Development Fund to help you start, grow or expand your business.

2. Enrol In Entrepreneurship Development Programmes: Participate in the Youth Entrepreneurship Development Programme (YEDP) or Women Entrepreneurship Development Programme (WEDP) to enhance your entrepreneurship skills and gain valuable insights. These programmes can provide the training and mentorship you need to succeed as a Small Business Owner.

3. Seek Mentorship And Networking Opportunities: Connect with experienced entrepreneurs and mentors through these government-sponsored programmes.

4. Access Government Procurement Tenders: Register your business with relevant government agencies to participate in procurement tenders.

5. Leverage Tax Incentives: Consult with tax advisers to understand the tax incentives that apply to MSMEs.

6. Utilise Trade Promotion and Market Access Initiatives: Expand your market reach through participation in trade fairs, exhibitions and online platforms organised by the government.

7. Stay Updated on Government Policies: Regularly monitor government websites and publications for updates on new programmes, policies and initiatives.

8. Seek Professional Assistance: When needed, engage consultants or advisers to guide you through complex processes or provide specialised expertise.

9. Build Relationships: Network with other small business owners, industry partners and government officials to build mutually beneficial relationships.

10. Embrace Innovation and Technology: Stay abreast of emerging technologies and trends that can enhance your business operations and expand your customer base.

Armed with this information, Small Business Owners should identify the specific programmes or policies that align with their businesses and relevant sectors of the economy.

They must also consider the following:

1. Meet the eligibility criteria and gather the necessary documentation for the programme they wish to apply for.
2. Attend training sessions and workshops offered by the government agencies responsible for administering their chosen programmes.
3. Seek guidance and support from business development service providers and industry associations.
4. Network with other entrepreneurs and participate in business development forums.
5. Stay informed about the latest government initiatives and incentives for MSMEs.

By leveraging these policies and participating in these programmes, Small Business Owners can take advantage of the essential and available resources, training and financial support to start, grow or scale their businesses.

If you need help preparing your business to take advantage of these programmes, contact us today.

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