The Central Bank of Nigeria, CBN, has introduced a stimulus package to support households and Micro, Small and Medium Enterprises (MSMEs) affected by the Coronavirus (COVID-19) pandemic.
READ ALSO: CBN Indefinitely Suspends Clearance Of Cheques
According to findings, the initiative, tagged Targeted Credit Facility, TCF, is aimed at providing support to Nigerians in the face of the difficulty posed by the outbreak of the virus which has afflicted many people and resulted in the death of several others globally.
Recently, the federal government led by President Muhammadu Buhari, announced that Abuja, Lagos, and Ogun states will be on lockdown due to the rampaging scourge which has been increasing on a daily basis.
The apex bank, as a result of the difficulty posed to Nigerians by this directive, announced that the 50 billion Naira stimulus package can be accessed by 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.
According to information obtained on the official website of a national microfinance bank, NIRSAL, the CBN also stated that enterprises with bankable plans to take advantage of opportunities arising from the COVID-19 pandemic can access the credit facility.
Reeling out the application process, the bank noted that interested applicants can submit applications directly to NMFB with clear evidence of the opportunity or adverse impact as a result of COVID-19 pandemic. Applications are then reviewed by the CBN for disbursement of funds.
According to CBN, the interest rate, under the intervention is 5% p.a. (all inclusive) up to 28th February 2021 and thereafter, the interest on the facility will revert to 9% p.a. (all inclusive) as from 1st March 2021.
The CBN added that the working capital will be for a maximum period of one year, with no option for rollover, while term loans have a maximum tenor of not more than 3 years with, at least, one-year moratorium.
Announcing how much applicants can be accessed the apex bank said loan amount to SMEs shall be determined based on the activity, cashflow and industry/segment size of beneficiary, subject to a maximum of N25 million, while working capital shall be a maximum of 25% of the average of the previous 3 years’ annual turnover.
