Wednesday 25 March 2020

In The Face Of #covid19 Induced Economic Down-Turn, Nigeria's Apex Bank Moves To Provide Support!

As the effect of the corona virus pandemic continues to eat deep into the system of economies around the world, governments are rallying to provide interventions for their citizens and organizations. 


                    

A couple of days ago, the Central Bank of Nigeria (CBN) introduced the N50bn Targeted Credit Facility as intervention to support households and Micro, Small and Medium Enterprises affected by the COVID-19 pandemic.
According to the apex bank, those that stand to benefit from the fund which would be financed from the Micro, Small and Medium Enterprises Development 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.
  • Enterprises with bankable plans to take advantage of opportunities arising from the COVID-19 pandemic.
Activities covered under the scheme include agricultural value chain activities; hospitality (accommodation and food services); health (pharmaceuticals and medical supplies); airline service providers. Also, manufacturing/value addition; trading and any other income-generating activities as may be prescribed by the CBN.
Information made available by the CBN indicates that the loan amount would be determined based on the activity, cash-flow and industry size of beneficiary, subject to a maximum of N25m for SMEs.
Households can equally 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.
Source: Punch News

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