The Central Bank of Nigeria (CBN) in conjunction with the Bankers’ Committee has finally unveiled the Creative Industry Financing Initiative (CIFI), which will enable businesses to obtain loans up to the tune of N500 million.
According to the official release of the CIFI document on the apex bank’s website, the initiative is targeted at boosting job creation in Nigeria, particularly among the youths.
Recent developments – Earlier in February 2019, the Bankers Committee of the CBN agreed to provide more funding for the development of the creative sector of the economy.
Addressing journalists shortly after the 342nd meeting of the Bankers Committee of the CBN, the Director, Banking Supervision Department, CBN, Mr. Ahmed Abdullahi, disclosed that the decision to support the creative industry was born out of the committee’s conviction that the sector holds the key to job creation, poverty reduction and inclusive growth.
Similarly, the Managing Director of Access Bank Plc, Herbert Wigwe, while reiterating the plan to support business owners in the I.T sector, also revealed that the committee plans to offer a single digit interest rate for the initiative.
“The Bankers Committee after a lot of research identified the creative and IT sector as a critical sector to support social and inclusive growth in Nigeria. We’ve basically found out that the sector would generate a significant amount of employment given how Nigerians involved in the creative sector have done well in music and others.” -Wigwe
How to benefit from CIFI Initiatives – CIFI has four different pillars which cut across different fields. Specifically, the four pillars include Fashion, Information Technology, Movies, and Music.
Hence, the CBN stated that to be eligible for the initiative, interested candidates must have businesses in areas which include:
- Fashion
- Information Technology
- Movie Production
- Movie Distribution
- Music and
Software Engineering Student Loan
Having satisfied the requirements of having a business in any of the areas highlighted above, the applicant is then required to prepare a business plan or proposal on how much is needed for such a business.
How to obtain the CIFI loan – According to CBN, loans accessible through CIFI is in the tune of N500m. Breakdown of loans accessible are listed below
- N3 million for Software Engineering Student
- N30 million for Movie Production business
- N500 million for Movie Distribution business
- Cover your rental/service fees for Fashion and Information Technology business
- Cover your training fees, equipment fees, and rental/service fees for Music business
Terms and conditions of loan request: In fufilment to its promise of a single digit interest rate, the CBN stated that loans can be accessed at any bank applicant’s choice with a maximum interest rate of 9% per annum (all charges inclusive) on all loans.
Repayment plan and period: The repayment plan and period differ across business sectors from software engineer to fashion and Information Technology.
- For Software Engineering Student Loan, it is a maximum of three years
- For Movie Production and Distribution, it is a maximum of ten years
- For Fashion, Information Technology (IT) and Music, it is a maximum of ten years