Strengthening the Capacity of Local MSMEs/Manufacturers to Produce High-quality PPEs and Healthcare-related Products (UNDP-EU Basket Fund)

The COVID-19 outbreak has caused a global health emergency and economic slowdown. With the pressing need to prevent the spread of COVID-19, the demand for imported healthcare products and personal protective equipment (PPE) has reached unprecedented levels, even as the procurement of required commodities to combat COVID-19 has become more difficult. With a pandemic that has disrupted global supply chains, many countries are focusing on meeting their domestic needs. Prior to the pandemic, more than 82 million Nigerians subsisted on less than US$1 a day, with 40% of the people living in poverty. About 30% of the country’s young people between the ages of 15 and 34 are unemployed and another 25% underemployed. Nigeria is a monocultural economy and the pandemic has crashed the price of crude oil, the country’s major source of revenue and foreign exchange, in the international market to the extent that Government has had to reduce the 2020 budget and slash the revenue projection by 40%. Consequently, Nigeria’s fragile economy is currently facing significant challenges occasioned by the pandemic and the attendant measures to contain it locally and internationally. For instance, the lockdown in many States in Nigeria to contain the spread of the virus has taken a toll on the economy and livelihoods of the people. Nigerian MSMEs largely lack capacity to produce high-quality PPEs and other healthcare-related products using established national and international standards. In the same vein, the preponderance of MSMEs in the country lack internal capacities to produce these products at scale. Therefore, there is an urgent need to expand the capacity of local MSMEs/manufacturers to produce high-quality personal protective equipment (PPEs), including cloth facemasks, disposable surgical masks, alcohol-based hand rub, gowns, aprons and coveralls to supplement imported healthcare products and meet the high demand for these products in Nigeria. In order to curb the spread of COVID-19, the Government of Nigeria and the United Nations system through UNIDO, WHO, UN Women, ILO and other Agencies will support and strengthen the capacity of selected local MSMEs/manufacturers including women and youth-led businesses to locally produce required quality PPEs and healthcare products based on international standar¬ds and regulations. There is also the need to support companies involved in the procurement of the required commodities to contribute to combating the COVID-19 crisis. Consequently, this intervention will help to keep MSME/manufacturers afloat, support the creation of decent jobs/employment, improve supply chains and promote transformative economic recovery and growth of local MSMEs/manufacturers. It suffices to say that the MSMEs are running as business entities and will remain in business with or without this project. The capital outlay required to produce the quantities of the high-quality PPEs and other healthcare-related products for the entire populace is huge. Hence, the support envisaged from the project to the MSMEs will catalyze and motivate them to remain in business. As the crisis is affecting investment, growth, and employment and has a negative impact on the competitiveness of micro, small and medium-enterprises (MSMEs), among other sectors in Nigeria, the proposed interventions will contribute to mitigating the impact of the crisis on some segments of the MSMEs sector. Nevertheless, the emphasis in the medium and long-term should shift to the other productive sectors of the economy to ensure a balanced and comprehensive growth and employment in post COVID-19 era, starting with an in-depth look into the new realities that reshaped international trade and global value chains. Based on that, a robust plan needs to be in place to ensure that economic impact is mitigated by a flexible and intelligent readjustment mechanism. The major expected outcomes are: i. Capacity of 170 local MSMEs/manufacturers including youth and women

Project symbol

NGA/21/03/UND

Admin unit

CO-Abuja

Start date

05/05/2021

End date

31/03/2023

Total allocation

528040

Total expenditure

Status

Closed

528040

Development Partners

United Nations Development Programme

Country/Countries

Nigeria

Outcomes

Outcome 4: Sustainable enterprises as generators of employment and promoters of innovation and decent work