COVID-19: CBN Approves N50 Billion Loan Facility for Affected Households and MSMEs
The Central Bank of Nigeria has created a N50 billion credit facility to be made available to interested victims of the COVID-19 outbreak in Nigeria.
In a statement released on March 23, 2020 and signed by the Director, Financial Policy and Regulation Department, Kevin N. Amugo, the apex bank said that the targeted credit facility (TCF) is meant for "households and small and medium-sized enterprises (SMEs), that have been particularly hard hit by COVID-19.
According to the statement, the objectives of the facility are:
- To cushion the adverse effects of COVID-19 on households and MSMEs.
- To support households and MSMEs whose economic activities have been significantly disrupted by the covid-19 pandemic.
- To stimulate credit to MSMEs to expand their productive capacity through equipment upgrade, and research and development.
Eligible participants are households and existing enterprises with verifiable evidence of livelihood or business activities adversely affected as a result of the COVID-19 pandemic. And, in addition, enterprises with bankable plans to take advantage of opportunities arising from the COVID-19 pandemic.
Eligible business activities under the scheme are: agricultural value-chain activities, hospitality (accommodation and food services), health (pharmaceuticals and medical supplies), airline service providers, manufacturing/value addition, trading, and any other income-generating activity as may be approved by the CBN.
The scheme will be funded by the CBN from the Micro, Small and Medium Enterprises Development Fund (MSMEDF), and will be coordinated by NIRSAL Microfinance Bank (NMFB).
The loan limits are N25 million for MSMEs and N3 million for MSMEs and households respectively, at an initial interest rate if 5% (up till February 28, 2021), after which it shall revert back to 9% per annum from March 01, 2021.
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