By Chioma Obinagwam
Banks in Nigeria under the aegis of the Bankers’ Committee have commenced the disbursement of loans for creative industries in the country at a single digit interest rate of nine percent.
Nigeria’s apex bank, Central Bank of Nigerian (CBN) disclosed during a press briefing held after the Bankers’ Committee meeting on Thursday.
The intervention fund which comes under the Creative Industry Financing Initiative (CIFI), will be open to all arms of the creative industries such as fashion industries, Information Technology industries, movie industries production and distribution industries, music and software engineering companies in addition to student loans.
Confiance News gathered that beneficiaries can access up to N500 million.
Intervention Fund is a Federal Government of Nigeria initiative to provide subsidized loans to Micro, Small and Medium Enterprises (MSME) at single digit (nine percent per annum) all inclusive interest rate.
Speaking at the briefing, the Director, Banking Supervision Department, CBN, Mr. Ahmed Abdullahi, said that the decision to support the creative industry was borne out of the committee’s conviction that the sector held the key to job creation, poverty reduction and inclusive growth.
Confiance News had reported that the Committee, in its previous meeting, had announced its resolve to create about 300,000 jobs over a five year period through this initiative.
Others present at the meeting are the Managing Director (MD), FBN Quest Merchant Bank, Kayode Akinkugbe; MD, Ecobank, Patrick Akinwuntan; MD, FSDH Merchant Bank, Hamda Ambah; Citibank MD, Akin Dawodu; and Director of Corporate Communications at the apex bank, Isaac Okorafor.
Other issues discussed at the meeting include consumer lending, mortgage financing and the need to encourage the culture of savings among Nigerians.
The Committee, however, enjoined interested applicants. Individuals, Business Owners and SMEs in the creative industries who wish to apply for business loans and students interested in applying for Students’ loans should collect and submit applications forms in their banks.
The bank will process the application forms for approval and consequent disbursement.
Applicants are to prepare their business plans or statements on what they intend to and how much they require for their businesses.
The Bankers’ Committee comprises Chief Executives of all the Deposit Money Banks (DMBs) in Nigeria as well as other top officials of the apex bank.
