Nigeria’s Central Bank begins disbursement of N50bn COVID-19 fund

Barring any last-minute change in plans, the disbursement of the first tranche of the Central Bank of Nigeria (CBN), Nigeria’s apex monetary authority, Nigeria’s Central Bank begins disbursement of  N50 billion targeted credit facility begins on Thursday.

The fund, which is being managed by the NIRSAL Microfinance Bank, has received over 80,000 applications.

The Managing Director, NIRSAL Microfinance Bank, Mr Abubakar Kure, confirmed the development in a telephone interview with our correspondent.

Kure, who did not provide the amount to be disbursed in the first tranche, said that those whose applications were successful would start receiving their fund on Thursday.

He said, “But we are hopeful that towards Thursday or Friday, the disbursement of the fund would commence.”

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.

The N50 billion intervention is being financed from the Micro, Small and Medium Enterprises Development Fund.

In terms of limit, the loan amount would be determined based on the activity, cash flow and industry size of beneficiary, subject to a maximum of N25 million for SMEs.

Households can access a maximum of N3 million while working capital would be a maximum of 25 per cent of the average of the previous three years’ annual turnover.

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.

According to the CBN guidelines, activities covered under the scheme include agricultural value chain; 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.

(Punch)

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