Post by Trade Coach on Dec 9, 2020 16:11:14 GMT 1
Central Bank of Nigeria Increases Credit For Households And SMEs To N300b
Did you remember the Central Bank of Nigeria (CBN) circular in March 2020 which introduced guidelines for the implementation of the targeted Credit Facility to support households and Small, Micro and Medium enterprises whose businesses were badly affected by the Covid-19 pandemic?
Who is eligible for this loan? According to the guidelines, those eligible are households and existing enterprises with verifiable evidence of livelihood adversely impacted by Covid-19 pandemic and enterprises with bankable business plans to take advantage of opportunities arising from the Covid-19 pandemic.
From the foregoing, it can be rightly interpreted that even if you do not have an existing business but you have a bankable business plan to show that you are capable of plugging into a business that can profit from the ashes of the Covid-19 pandemic, you are qualified to apply. I sincerely believe here that agricultural businessmen and women can easily key in here and reap a lot of profit.
Also critically going through the guidelines you will discover that it is not a free for all facility, as you must be able to prove that your existing business was adversely affected by the activities of the pandemic. A typical example is if you were not able to feed your animals and they died of hunger or malnutrition during the lockdown and you can prove it, then you may qualify.
The Central Bank of Nigeria (CBN) has just increased that credit facility for households and small and medium scale businesses to N300b. It started with N50b and later increased to N150b, now it has doubled to N300b. You can see the seriousness of the government here. This is a targeted business facility provided by the apex bank for those households and companies affected by the ravaging effects of Covid-19 pandemic as stated by the circular.
The CBN stated that it had to expand the credit line in order to enable more households and small scale businesses to benefit from the programme. When responding to the Covid-19 report presented by the Monetary and Fiscal Authorities, the central bank governor, Godwin Emefiele revealed that the said funds were being disbursed already through the microfinance bank saddled with the responsibility, NIRSAL Microfinance Bank.
The governor of the central bank of Nigeria (CBN) said that N149.21b has been disbursed to about 316,869 (Three hundred and sixteen thousand, eight hundred and sixty-nine) beneficiaries. He further revealed that the major reason for increasing the fund to N300b (Three hundred Billion Naira) was due to the high level of success recorded by the programme, and its highly positive impact on Nigeria’s output and productivity.
The parameters for the disbursement of the facility were based on business activity, cash flow and the size of the benefitting households. Businesses eligible can collect up to N25m (Twenty-five million Naira) while qualifying households can collect up to N3m (Three million Naira) each.
The apex bank also hinted that the target facility was doubled in order to accommodate many more expected beneficiaries which will in return boost consumer financial and disposable income. These benefits are expected to increase business activities leading to increased economic growth for the nation.
The governor said that “given the effect of Covid-19 on key economic variables, the authorities took unprecedented measures to prevent any long term damage to the growth prospects of the Nigerian economy”. The governor also revealed that there is one-year extension of the moratorium on principal repayments for Central Bank of Nigeria’s (CBN) intervention facilities. Also that regulatory forbearance was granted to banks to restructure loans given to sectors critically affected by the covid-19 pandemic.
He also said that the apex bank disbursed to 24,702 beneficiaries of Agri-business/Small and Medium scale Enterprises/Investment Scheme (AGSMEIS) the sum of N92.90b. The CBN also disclosed that it extended over N738 billion credits to manufacturers for manufacturing and related activities to keep their operations running amidst the ravaging pandemic.
Owing to various intervention schemes of the government, the agricultural sector has continued to record positive growth in the sector leading to improved demand for local produce.
Did you remember the Central Bank of Nigeria (CBN) circular in March 2020 which introduced guidelines for the implementation of the targeted Credit Facility to support households and Small, Micro and Medium enterprises whose businesses were badly affected by the Covid-19 pandemic?
Who is eligible for this loan? According to the guidelines, those eligible are households and existing enterprises with verifiable evidence of livelihood adversely impacted by Covid-19 pandemic and enterprises with bankable business plans to take advantage of opportunities arising from the Covid-19 pandemic.
From the foregoing, it can be rightly interpreted that even if you do not have an existing business but you have a bankable business plan to show that you are capable of plugging into a business that can profit from the ashes of the Covid-19 pandemic, you are qualified to apply. I sincerely believe here that agricultural businessmen and women can easily key in here and reap a lot of profit.
Also critically going through the guidelines you will discover that it is not a free for all facility, as you must be able to prove that your existing business was adversely affected by the activities of the pandemic. A typical example is if you were not able to feed your animals and they died of hunger or malnutrition during the lockdown and you can prove it, then you may qualify.
The Central Bank of Nigeria (CBN) has just increased that credit facility for households and small and medium scale businesses to N300b. It started with N50b and later increased to N150b, now it has doubled to N300b. You can see the seriousness of the government here. This is a targeted business facility provided by the apex bank for those households and companies affected by the ravaging effects of Covid-19 pandemic as stated by the circular.
The CBN stated that it had to expand the credit line in order to enable more households and small scale businesses to benefit from the programme. When responding to the Covid-19 report presented by the Monetary and Fiscal Authorities, the central bank governor, Godwin Emefiele revealed that the said funds were being disbursed already through the microfinance bank saddled with the responsibility, NIRSAL Microfinance Bank.
The governor of the central bank of Nigeria (CBN) said that N149.21b has been disbursed to about 316,869 (Three hundred and sixteen thousand, eight hundred and sixty-nine) beneficiaries. He further revealed that the major reason for increasing the fund to N300b (Three hundred Billion Naira) was due to the high level of success recorded by the programme, and its highly positive impact on Nigeria’s output and productivity.
The parameters for the disbursement of the facility were based on business activity, cash flow and the size of the benefitting households. Businesses eligible can collect up to N25m (Twenty-five million Naira) while qualifying households can collect up to N3m (Three million Naira) each.
The apex bank also hinted that the target facility was doubled in order to accommodate many more expected beneficiaries which will in return boost consumer financial and disposable income. These benefits are expected to increase business activities leading to increased economic growth for the nation.
The governor said that “given the effect of Covid-19 on key economic variables, the authorities took unprecedented measures to prevent any long term damage to the growth prospects of the Nigerian economy”. The governor also revealed that there is one-year extension of the moratorium on principal repayments for Central Bank of Nigeria’s (CBN) intervention facilities. Also that regulatory forbearance was granted to banks to restructure loans given to sectors critically affected by the covid-19 pandemic.
He also said that the apex bank disbursed to 24,702 beneficiaries of Agri-business/Small and Medium scale Enterprises/Investment Scheme (AGSMEIS) the sum of N92.90b. The CBN also disclosed that it extended over N738 billion credits to manufacturers for manufacturing and related activities to keep their operations running amidst the ravaging pandemic.
Owing to various intervention schemes of the government, the agricultural sector has continued to record positive growth in the sector leading to improved demand for local produce.
