The Finance Ministry, headed by Zainab Shamsuna Ahmed, has highlighted Medium Small Micro Enterprises (MSMEs) as one of its focal areas in a bid to stimulate a broader and inclusive growth of the economy. In a paper that leaked to the press, the ministry is mapping a recovery path for the ailing national economy. Hence it is leaving no stones unturned as it seeks to begin work on a Medium-Term Economic Growth Acceleration plan expected to fully kick off in 2021.
The Medium-Term Economic Growth Acceleration plan is expected to replace the Economic Recovery and Growth Plans (ERGP) which will run its course in 2020. The replacement strategic plan therefore is expected to boost vital sectors through infrastructural development, tax incentives, and effective coordination of stimulus policies to revamp the economy in the years after 2020. Entrepreneurship is, however, seen as key to the overall growth effort.
The ministry plans to create an enabling operating environment for businesses to flourish. With the ease of doing business topping the agenda, Medium Small and Micro Enterprises (MSMEs) are set to receive breaks, tax reduction and rebates, in areas covering corporate rate especially for businesses with turnover of N25m, and other MSMEs which are not worth as much but have shown potential for growth. A 1% tax rebate is being mulled for entrepreneurs who pay their taxes early.
The emphasis on entrepreneurship is a boost to the revenue-generating ecosystem. As a tool for economic prosperity, human capital development must be given adequate attention. This is critical as the federal government is urgently in need of cash to keep up with its responsibility of providing jobs for a growing youth population.
While capitalism is built on speedy execution of fresh product and service ideas by a nation’s citizens, creating an enabling environment that support business initiatives is vital. Hence to ensure cohesion and proper coordination of the new policies, the Finance Ministry is setting up a Steering Committee to ensure all agencies are in tune with the new vision.