CBN Begins Disbursement of N50bn Credit Facility

By Adedapo Adesanya

The Central Bank of Nigeria (CBN) will today commence the disbursement of the first tranche of N50 billion Targeted Credit Facility (TCF) Fund to households and Micro, Small, and Medium Enterprises across the nation.

The fund, which is being managed by the NIRSAL Microfinance Bank, has received over 80,000 applications with more than half of this coming from households, as earlier reported by Business Post.

The first batch of disbursement was confirmed by the Managing Director, NIRSAL Microfinance Bank, Mr Abubakar Kure.

According to Mr Kure, who did not provide the amount to be disbursed in the first tranche, those whose applications were successful would start receiving their fund on Thursday, April 23.

Speaking he stated, “But we are hopeful that towards Thursday or Friday, the disbursement of the fund would commence.”

The CBN had introduced the N50 billion Targeted Credit Facility as a stimulus package to support households and Micro, Small and Medium Enterprises affected by the COVID-19 pandemic.

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, on the other hand can 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.

The caveat with the facility points that only 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.

The apex bank may also consider manufacturing/value addition; trading and any other income-generating activities.