CBN Lists Requirements To Access N50bnCovid-19 Fund for Intervention - DaOptimistic World




Wednesday, 25 March 2020

CBN Lists Requirements To Access N50bnCovid-19 Fund for Intervention

CBN Lists Requirements To Access N50bnCovid-19 Fund for Intervention

Nigeria's Central Bank has listed the requirements that individuals and businesses willing to access their N50bn investment fund must fulfill.

Last week, the apex bank unveiled the fund in response to the coronavirus pandemic, which resulted in unprecedented disruptions to global supply chains, dramatic falls in global crude oil prices, global asset chaos and financial markets, lockdowns of large swaths of human movements in many countries, among others.

These findings had serious consequences for the livelihoods and business practices of households, resulting from a fall in global demand, a drop in consumer trust and a slowdown in production.

The CBN has launched the N50bn Targeted Credit Facility in this respect as a stimulus package to help households and micro, small and medium-sized enterprises impacted by the COVID-19 pandemic.

Based on the guidelines published by the CBN, those who may benefit from the fund are households with verifiable evidence of livelihood adversely affected by COVID-19; current undertakings with verifiable evidence of business activities adversely affected by the COVID-19 pandemic and undertakings with bankable plans to leverage opportunities arising from the COVID-19 pandemic.

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

Others are the addition of manufacturing / value; trading and any other income-generating activities as the CBN can prescribe.

The guidelines said the Micro, Small and Medium Enterprises Development Fund will fund the scheme.

It said the eligible participating financial institution for the Scheme would be NIRSAL Microfinance Bank. In terms of loan limit, the apex bank said 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 N3m while working capital would be a maximum of 25 per cent of the average of the previous three years’ annual turnover

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