Economy
Coronavirus: CBN releases guideline for disbursement of N50 billion intervention fund

CBN Gov. Godwin Emefiele has released guideline for the disbursement of the N50 billion special intervention fund by the Central Bank of Nigeria (CBN).
The fund is meant to serve as a stimulus package for households and small businesses to cushion the effect of the COVID-19 pandemic.
Governor of the CBN, Mr Godwin Emefiele, had announced the introduction of the N50 billion Targeted Credit Facility (TCF) and according to the guideline, NISRAL Microfinance Bank (NMFB) will serve as the disbursing financial institution with SMEs, households and enterprises that have verifiable evidence of livelihood and evidence of business activities adversely impacted by COVID-19 well as those with bankable plans to take advantage of opportunities arising from the COVID-19 pandemic.
The guideline stated that the sectors that would be eligible for the credit facility include agriculture value chain, hospitality, health, airline service providers, manufacturing/value addition, trading as well as any other income generating activities as may be prescribed by the CBN.
The scheme which will be financed from the Micro, Small and Medium Enterprises Development Fund (MSMEDF), will see SMEs getting a maximum facility of up to N25 million while households can access up to N3 million based on the activity, cashflow and industry/segment size of beneficiary.
“Working capital shall be a maximum of 25 percent of the average of the previous three years’ annual turnover; where the enterprise is not up to three years in operation, 25 per cent of the previous year’s turnover will suffice.
“Interest rate under the intervention shall be five percent per annum all inclusive up to 28th February 2021 and thereafter, the interest on the facility shall revert to nine per cent as from 1st March 2021,” the apex bank said.
The guideline stated that collateral for the facility will include one or more of the following: “Moveable asset(s) duly registered on the National Collateral Registry (NCR), Simple deposit of title documents, in perfectible state, Deed of Debenture (for stocks), in perfectible state, Irrevocable domiciliation of proceeds, Two acceptable Guarantor, Personal Guarantee of the promoter of the business, Life Insurance of the Key-Man, with NMFB noted as the First Loss Payee, Comprehensive Insurance over the asset.”
-
News1 month ago
Confusion in ISWAP, B’Haram camp, as top commanders eliminated in military’s fire power [Pictures]
-
News3 months ago
Breaking: Bello appoints Ohinoyi of Ebira Chairman, Kogi Council of Chiefs
-
News2 months ago
El-Rufai fires Kaduna Road agency MD, Magaji over alledged embezzlement of N3 billion
-
News3 months ago
Amid endless salary cut, Bello takes delivery of Mercedes Benz S class, 2019 model worth N98 million
-
Opinion2 months ago
Attah Igala stool: Alhaji Yahaya Bello must watch his Deputy closely
-
News1 month ago
Israeli’s IDF craziest operation that got the world ‘ever wondered’
-
News2 months ago
Crisis looms as outgoing IGP, Adamu secretly disposes multi-billion naira police officers mess to private developer in Lagos
-
News4 weeks ago
US Senate overwhelmingly votes to make embassy in Jerusalem permanent