By Adedapo Adesanya
A total of 3,256 individuals and businesses will benefit from the first batch of the Central Bank of Nigeria (CBN) N50 billion Targeted Credit Facility.
The Managing Director, NIRSAL Microfinance Bank, Mr Abubakar Kure, made this disclosure at the disbursement of the fund on Thursday in Abuja.
He said the first beneficiaries were affected by the negative impact of the coronavirus pandemic.
Business Post last month had reported that over 80,000 applications were received, half of which were individuals for the N50 billion credit facility of the apex bank.
However, at that time, the NIRSAL boss had not disclosed the number that would benefit from the first tranche.
Now, with that known, Mr Kure did not provide the amount that would be given to the 3,256 beneficiaries, but stated that the bank was committed to ensuring that only individuals and businesses adversely affected by the health crisis would benefit from the fund.
He explained that through the disbursement, beneficiaries will resume productive activities as the economy begins a phased reopening after the lockdown.
“The idea of this fund is to provide cash flow owing to the lockdown and the restrictions in movement of people.
“The flag-off is intended to provide liquidity following cash flow issues as a result of the negative impact of COVID-19,” he said.
The CBN had introduced the N50 billion Targeted Credit Facility in April as a stimulus package to support households and Micro, Small and Medium Enterprises (MSMEs) affected by the COVID-19 pandemic.
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 and existing enterprises with verifiable evidence of activities adversely affected as a result of the COVID-19 pandemic.
According to the CBN guideline, activities covered under the scheme include agricultural value chain activities; 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.
Mr Kure warned that while the lockdown had adversely affected the economy, the amount being disbursed was not a grant.
He urged beneficiaries to use the amount for the purpose it was collected for because the bank would ensure that all those who took the loans must repay what they took.
Mr Kure said, “This is not a grant; it is a credit facility intended to cushion the impact of COVID-19 on businesses particularly the SMEs.
“The SMEs are the engine of any economy because they provide employment and taxes to government.
“We urge people to apply. You don’t need to know anybody before you apply and once you qualify, you will be given the loan.”
The N50 billion intervention is being financed from the Micro, Small and Medium Enterprises Development Fund and disbursed by NIRSAL.
In terms of loan 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 the SMEs.
Households could access a maximum of N3 million while working capital would be a maximum of 25 percent of the average of the previous three years’ annual turnover.
Dipo Olowookere