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CBN begins disbursement N50bn COVID fund next week, says over 80,000 applications received

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Nigerian private sector coalition against COVID-19



Three weeks after the Central Bank of Nigeria released the guidelines for the N50bn targeted credit facility, over 80,000 applications have so far been received from businesses and individuals.

The Managing Director, NIRSAL Microfinance Bank, Mr Abubakar Kure, confirmed this during a media briefing on Tuesday in Abuja.

The CBN had introduced the N50bn Targeted Credit Facility as a stimulus package to support households and
Micro, Small and Medium Enterprises affected by the COVID-19 pandemic.

Based on the guidelines released by the CBN, 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 COVID-19 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.

Giving a breakdown of the 80,000 applications, the NIRSAL MD said that 40,000 applications were from households while 30,000 applications were received from Small and Medium Enterprises.

He said from next week, the bank would begin the disbursement of the fund to those who met the criteria set for the fund by the apex bank.

Kure who was accompanied to the media by top officials of the apex bank and NIRSAL said,

“We have over 80,000 application out of which 40,000 came from households while 30,000 is from SMEs.

“From next week, genuine applicants will start receiving alert for their loans.

“Our people are working remotely and disbursements will start next week.”

On the controversy surrounding the payment of N10,000 for business plan before the loan could be accessed, Kure said the management of the bank has shelved the requirements for business plan.

He said,

“The issue of business plan was a requirement for SME applications as stopulat d by the CBN guideline.

“In order to stem further controversy, the management of NMFB has resolved that the business plan is no longer a mandatory requirement and the third party provision of a business plan is no compulsory.

“We assure Nigerians of adhering to the guidelines as laid down by the CBN.”

Also speaking at the briefing, the CBN Director, Corporate Communications Department, CBN, Mr Isaac Okorafor warned applicants against making payments for business proposal.

He said the CBN and NIRSAL MFB have decided tto push on with the intervention programmes in order to cushion the negative impact of COVID-19 on Nigerians.

He warned that the fund is not a grant adding that beneficiaries of the fund would be made to repay what they collected based in the terms of agreement.

The N50bn intervention is being financed from the Micro, Small and Medium Enterprises
Development Fund.

In terms of loan limit, the loan amount would be determined based on the activity, cashflow and industry size of beneficiary, subject to a maximum of N25m for SMEs.

Households could 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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