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How to get creative sector loan from the CBN, Bankers Committee

The bank will then discuss, analyze your request and if successful will disburse the funds.

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Nigeria’s manufacturing sector contracts for 5th consecutive month – CBN , To test FX market, CBN pumps $50 million, CBN issues guidelines to Finance Institutions on establishment of Subsidiaries and SPVs, CBN injects $2.63 billion to defend naira in one month, CBN’s COVID-19 N50 billion targeted credit facility, CBN’s heterodox policies buoys credit growth, These industries drove business activities in September, Credit to Nigerian economy falls to N38.67 trillion as private stagnates at N30 trillion

The Central Bank of Nigeria (CBN), in collaboration with the Bankers’ Committee, has outlined how to get the creative sector loans.

Both parties developed a Creative Industry Financing Initiative (CIFI) as part of efforts to boost job creation in Nigeria, particularly among youths in the country. The initiative has four pillars which include Fashion, Information Technology, Movie and Music.

It would be recalled that last year, the CBN in conjunction with the Bankers’ Committee unveiled the Creative Industry Financing Initiative (CIFI), which was to enable businesses to obtain loans up to the tune of N500 million.

Interested applicants in the creative industry are advised to submit their applications to their banks for approval and subsequent disbursement.

READ MORE: CBN to boost creative industry with N22 billion 

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How to benefit from the Creative Industry Financing Initiative (CIFI): The categories of businesses to benefit from this include Fashion, Information Technology, Movie Production, Movie Distribution, Music and Software Engineering Student Loan.

Part of the steps in applying for the loan is to prepare your business plan or statement on how much you want for your business.

You can get a loan of up to:

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  • N3 million for a Software Engineering Student
  • N30 million for a Movie Production business
  • N500 million for a Movie Distribution business
  • Cover your rental/service fees for Fashion and Information Technology businesses
  • Cover your training fees, equipment fees and rental/service fees for Music business

After preparation of the business plan stating how much is needed for the business, applicants are advised to go to any bank of their choice to apply for the loan.

The bank will then discuss, analyze your request and if successful will disburse the funds. It must be noted that the maximum interest rate of 9% per annum (all charges inclusive) is applicable to all loans.

The period for the repayment of the loan in the different categories are:

  • For Software Engineering Student Loan, it is a maximum of 3 years
  • For Movie Production and Distribution, it is a maximum of 10 years
  • For Fashion, Information Technology (IT) and Music, it is a maximum of 10 years.

For more information, you can visit www.cbn.gov.ng

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Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

7 Comments

7 Comments

  1. Jude Chizoba Jonathan

    July 13, 2020 at 8:50 am

    My name is Jude chizoba Jonathan, am a business man dealing with spare parts, sir, I also need loan to support my business and how can obtain it. Thanks

  2. Jamilu Dahiru

    July 13, 2020 at 11:12 am

    Good morning sir Iam a graduate from school of health I want a loan to open a chemist which may help many people in our community were they in assessible to reach the health care service, and I refund the loan easily whising the stipulated period Thank

  3. Chyke Umegbolu

    July 13, 2020 at 3:10 pm

    Please Chyke am into fish farming and cway bottle water, but am trying to see how I can get a loan for or a partenar for my fish production. I missed out on the covid19 loan, when I knew about it,it was late. On the CIFI loan I need about N1 million naira loan to back up my bottle water business.

  4. Ifeoma ilo

    July 13, 2020 at 10:37 pm

    My name is ifeoma ilo I graduated as an accountant but am into business of buying n selling I need a loan to support my existing business

  5. Princewill gift

    July 14, 2020 at 7:15 am

    Good morning sir my name is princewill gift am into fish farming but I need a loan to make it bigger

  6. Edson A.A Phellyx

    July 14, 2020 at 8:40 am

    My name is Edson Phellyx, into construction, manufacturing and artisan,metal and aluminum fabrications (steel security doors).Taking the advantage of the covid-19,that has crippled our economy, as to contribute in reviving it internally by producing and meeting the international standard.
    So if I’m giving the loan,i should be able to expand the manufacturing business, to create jobs to take youths off the streets.

  7. Jane

    July 30, 2020 at 9:44 am

    I am Jane I need a loan for an existing business

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Exclusives

CRR: Banks suffer N917.5 billion debits in latest CBN action

The central bank debited Nigerian banks N917.5 billion last week in its latest CRR action.

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CRR: Banks suffer N917.5 billion debits in latest CBN action

Nigerian banks suffered a total of N917.5 billion in new CRR debits from the Central Bank of Nigeria. Reliable sources inform Nairalytics Research that the latest debits occurred in the week ended October 23rd, 2020.

The cash reserve requirement is the minimum amount banks are expected to leave retained with the Central Bank of Nigeria from customer deposits. In January, the CRR was increased by 5% to 27.5% by the CBN Monetary Policy Committee (MPC) who explained that the decision was intended to address monetary-induced inflation whilst retaining the benefits from the CBN’s LDR policy.

READ: CBN says 17 banks to restructure over 32,000 loans

CRR Debits for Nigerian Banks.
Nairalytics Data

READ: Union Bank suffers N188 billion in CRR debits as at June 2020

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From the data, Zenith Bank topped the list with N285 billion followed by UBA with N160 billion. The rest of the FUGAZ, Access, FBN, and GTB were debited N140 billion, N95 billion, and GTB N55 billion respectively. The FUGAZ also suffered a N1.9 trillion debit in CRR sequesters in the second quarter of 2020 (April – June) alone.

READ: Nigeria’s forex devaluation timeline – 2020

Nigeria’s central bank has since 2019 debited Nigerian banks a chunk of their deposits as part of a mutually inclusive cash reserve requirement (CRR) and Loan to Deposit Ratio policy that is targeted at coercing banks to lend more to the private sector.

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READ: CBN reviews minimum interest rates on savings deposit to 1.25%

Last month, Nairametrics reported that the CBN now holds a total of N6.57 trillion in CRR debits from the nation’s top 5 banks a whopping 43% higher than the N4.58 trillion held in March and more than double the N3.5 trillion CRR debits as of December 2020. CRR debits in the third quarter of 2020 will be revealed when banks release their results in the coming days and weeks.

READ: Nigeria’s telecom sector posts double digit growth of 18.1%, manufacturing, others contract

Meffynomincs: CBN under the leadership of Godwin Emefiele has deployed several heterodox policies as it strives to stimulate the economy and manage the exchange rate crisis in the absence of strong fiscal support.

  • Interest rates on fixed deposits and money market instruments have fallen to single digits despite the galloping inflation rate.
  • Last month, the CBN monetary policy committee admitted it was no longer combating inflation but will direct its policies towards stimulating lending to the private sector hoping this will spur local production.
  • This policy has placed banks in the crosshairs with the Apex bank exposing them to CRR debits if they cannot use customer deposits to spur lending.

 

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ENDSARS

#EndSARS: Access Bank announces N50 billion interest-free facility for businesses

Access Bank Nigeria Plc has announced plans to offer N50billion interest-free credit facility to individuals and businesses. 

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Access Bank Plc, Nigeria's Creative Industry needs urgent financing from commercial banks to bridge unemployment gaps - Herbert Wigwe

Access Bank Nigeria Plc. has announced N50 billion in support of Nigerians through interest-free loans and grants to support communities, the youths, and micro, small and medium-sized businesses.

READ: Access Bank gets regulatory approval to become a Holding Company

READ: Banks lay-off 2,477 staff during lock-down

This information was disclosed by the bank through its official LinkedIn page. 

The bank’s official statement read thus,

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“Now more than ever, we remain committed to our purpose of impacting lives positively. In light of the recent occurrences, we will be supporting Nigerian businesses with 50 Billion Naira interest-free loans and grants. Watch this space for more information.”

READ: Access, GTBank, two others pay PWC & EY N1.5 billion as Audit fees in H1 2020 

Why it matters

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The impact of the pandemic, coupled with the hijacked #EndSARS protests that led to the looting of businesses and destruction of properties has thrown so many Nigerians into debts.

READ: $70 billion per annum will be needed to tackle pandemic induced poverty – World Bank

READ: WTO DG: US, EU divided over Nigeria’s Okonjo-Iweala and South Korea’s Yoo

This show of support from Access Bank will help alleviate and stimulate economic activities, as well as produce many positive multiplier effects on the economy.

READ: #EndSARS: Popular hacking group, Anonymous allegedly hacks Nigerian Govt. websites

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Financial Services

CBN reviews appointment requirements for CCOs in Banks

The CBN has reviewed the appointment criteria for CCOs in Merchant Banks and Regional Banks.

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Access Bank Plc, Herbert Wigwe, CBN, interest payment on bank deposits, CBN review appointment requirements for Chief Compliance Officers in Banks

The Central Bank of Nigeria (CBN) has reviewed the appointment criteria for Chief Compliance Officers in Merchant Banks and Regional Banks (Commercial and specialized).

This is according to a circular issued by the apex bank dated October 9, 2020, and signed by its Director of Financial Policy and Regulation Department, Kevin Amugo.

READ: CBN has rolled out new anti money laundering penalties that should get any banker worried

According to the latest notice, Merchant banks and Regional banks are hereby granted dispensation to appoint CCOs on a grade not below an Assistant General Managers. However, the CCOs will report directly to the ECO of the financial institutions who have sole responsibility for compliance matters in the bank.

READ: CBN to “reduce” savings rate to 1% declare OMO bills as “Poison”

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Backstory

This latest action by the CBN is the sequel to consultations and engagement with stakeholders emanating from its earlier circular referenced FPR/DIR/GEN/CIR/06/004 of September 28, 2016, in which the tentative requirements for Executive Compliance Officers and Chief Compliance Officers of deposit money banks were mooted.

(READ MORE:CBN moves to ring-fence Disco collections)

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Meanwhile, the requirements and responsibilities of Executive Compliance Officers remain as earlier communicated in the circular dated 28 September 2016.

A part of the recent circular signed by Mr. Kevin read thus,

READ: CBN grants approval for banks to debit accounts of loan defaulters 

“Further to the circular referenced FPR/DIR/GEN/CIR/06/004 of 28 September 2016 on the appointment of Executive Compliance Officers (ECO) and Chief Compliance Officers (CCO) of deposit money banks, the CBN has, after due considerations and presentations by stakeholders on the size, structure, operation, and dynamics of classes of operators in the sectors reviewed the requirements for the appointment of Chief Compliance Officers.”

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