CBN building

Adebayo Obajemu

The Central Bank of Nigeria has played a major role in the Buhari administration. It has made a lot of interventions in many sectors from manufacturing to agriculture to positive policy thrust to help the administration drive its policies, a notable one is rice production, denial of foreign exchange to importation of products that can be locally produced among other sterling interventions.

Now the icing on the cake, is the apex bank has been at the forefront of assembling banks, especially those on tier 1 and powerful business men to make contributions in monetary terms to fight the pandemic, and the result -COCAVID- which is corporate coalition against Coronavirus- -has been a huge success.

Just last week it came up with another lifeline for vulnerable businesses and individuals to access funds to cushion the effect of lockdown and the pandemic through loans .

The apex bank through the NIRSAL Microfinance Bank is disbursing N50billion targeted credit facility as a measure of relief to the economic impact of the Coronavirus Pandemic ravaging the world, nay Nigeria, Which financial analysts and experts say may cause recession, loss of jobs and large scale disruptions to the economy.

The apex bank has laid out some guide lines to follow in order to access the scheme.

For good measure, the eligible activities under the scheme are:
Agricultural Value chain;
Hospitality ( Accommodation and Food Services);
Health ( Pharmaceaticals and Medical Supplies);
Airline Sevice providers;
Manufacturing/Value addition ;
Trading; and
any other income generating activities as may be prescribed by the CBN.

Loan limits

The apex institution has also set loan limits to regulate the scheme.
For Households Maximum is N3million,
while for small medium enterprises, SME , the maximum is N25million.

The interest rates are set at 5% upto February 2021, there after it becomes 9%.
The bank has set a soft tenor period as the term loan maximum is 3years with at least one year moratorium.
The working capital is one year with no option of rollover.

In order to access the Loan, a strong collateral security is set as a bulwark against defaulters.

Collateral Security:

One, Moveable assets registered with National Collateral Registry.
Second, Simple deposit of Title documents in perfectable state.
The third one is Deed of Debenture in perfectable state, while the fourth is Irrevocable domicilliation of proceeds.
The fifth condition is presentation of two acceptable Guarantors.
Also necessary is the
Personal Guarantee of the promoter of the business.
A Life Insurance of the Key – Man,with NMFB noted as the first Loss payee is also necessary.
There must also be a comprehensive Insurance over the assets.

The Modalities of application:

HOUSEHOLD: For the household, It must submit applications direct to Nirsal Microfinance Bank through the link:

Applications should contain BVN, Business Registration where applicable and Business plan with clear evidence of the opportunity or adverse impact as a result of COVID – 19 pandemic.