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The Central Bank of Nigeria (CBN) has disclosed the guidelines that must be followed by individuals and companies to access the N50billion targeted credit facility for households and Small and Medium Enterprises that are badly hit by COVID-19.

This was disclosed in a circular issued by CBN and signed by its Director, Financial Policy and Regulation, Kevin Amugo.

The apex bank had last week unveiled the fund in response to the coronavirus pandemic, which had led to unprecedented disruptions to global supply chains, sharp drop in global crude oil prices, turmoil in global stock and financial markets, lockdown of large swaths movements of persons in many countries, among others.

Why it matters: The outcome of the disease have had severe consequences on households’ livelihoods and business activities, resulting from drop in global demand, declined consumer confidence and slowdown in production.

READ MORE: SMEDAN to move 40 million informal businesses to formal sector, registers MSMEs

In this respect, the CBN introduced the N50billion Targeted Credit Facility as a stimulus package to support households and Micro, Small and Medium Enterprises affected by the COVID-19 pandemic.

How it works: CBN explained that those that can benefit from the fund are households with verifiable evidence of livelihood adversely impacted by COVID-19; existing enterprises with verifiable evidence of business activities adversely affected as a result of the pandemic and enterprises with bankable plans to take advantage of opportunities arising from the COVID-19 pandemic.

According to the CBN guideline, activities covered under the scheme include agricultural value chain activities; hospitality (accommodation and food services); health (pharmaceuticals and medical supplies); and airline service providers.

Others are manufacturing/value addition; trading and any other income-generating activities as may be prescribed by the CBN.

READ MORE: COVID-19: All courts to shut down immediately

It said, “The scheme would be financed from the Micro, Small and Medium Enterprises Development Fund and the eligible participating financial institution for the Scheme would be NIRSAL Microfinance Bank.”

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The apex bank added that the loan amount would be determined based on the activity, cashflow and industry size of beneficiary, subject to a maximum of N25m for SMEs.

It said households can access a maximum of N3million while working capital would be a maximum of 25 per cent of the average of the previous three years’ annual turnover

27 COMMENTS

  1. Please somebody should direct us to where we can get the room without that the big wings we share the money with themselves

  2. How can I get a chance to access this COVID-19 CREDIT FACILITY?.. We know the bigger fishes will devour them before our reach. Nigerians already know hands that created this opportunity and the real owners. God save the poor .

  3. How do l apply. Am in yenagoa. And am interested on the loan. I Have a land here which l intend to use for agricultural produces. But need money to start up. Thank you.

  4. Great mindset, but who are going to benefit from it? Only the big wings. God we’re in your hands save us because nigeria ur beloved country has turned to something else.

    • I doubted if CBN and co know the meaning of corona virus. Before you set any criteria to. Qualified. You must first provide first Aid that will make people survive. One of the major factors that drag Nigeria to poverty is the lack of our economic team to identify the ratio at which poverty had destroyed Nigerians. Let CBN keep her money. When corona affected quatre of Nigeria. They Will know what to do

  5. How can I access the loan am a business owner with registered document and sculm certificate am in Lagos

  6. We do not have adequate institutional structure to disburse such huge social welfare assistance to Nigerians, without abuse from those assigned to effect the payments. We have serious problem of corruption, nepotism, and accountability in Nigeria. I am available to help in developing a workable structure for this purpose.

  7. I am interested. I have a land good for agriculture. I will be glad for I can have a loan to enable me start up. Thanks

  8. How can someone fulfill all these requirements before accessing this loan when this COVID 19 is a big threat to lives . Nigeria government is never establish for commoners. God help us

  9. government of the rich,what about the millions of persons in the rural areas how are they going to benefit from ur one sided loan ,or do they not have mouth to eat??? Washed and faded leaders.

    • Here they come again, they have mapped out.a plan to compensate themselves…these greedy people can never do anything without using the masses as their ladder…I throw you a challenge …No neutral member of the masses with benefit from this facility until they finish the money…l will ask you when it’s all done

  10. Am a trader. Due to COVID-19 our market will be shut from Monday 30, March 2020. No more trading or means of survival.

    I need the loan or assistance for my household to survive.

    Please how do I access the loan?

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