CBN Highlights Details for Households and SMEs to Access the N50billion Stimulus Package.
The Central Bank of Nigeria states the conditions guiding the distribution of the N50billion COVID-19 intervention fund to individuals and companies.
The apex bank announced the release of the N50billion intervention fund in response to the coronavirus pandemic, which had led to a bizarre disruption to the global supply chains.
This also caused a weak drop in the global crude oil prices, total breakdown in the crypto market, stock and financial markets. Also, there was a large restriction to movement of persons in many countries, among others.
These results have severelly affected human lives, causing too many deaths and reducing the living standard of some households.
It has also affected businesses, most especially small and medium scale businesses, due to decrease in demand, declined consumer confidence and slowdown in production.
In response to this, the CBN released a N50bn Targeted Credit Facility serving as a stimulus package to support households and micro, small and medium scale platforms affected by coronavirus pandemic.
Following the guidelines released by the CBN for accessing the stimulus packages, the funds can only be accessed by households with verifiable evidence of livelihood heavily affected by COVID-19.
Also, existing businesses with a verifiable evidence of business activities heavily affected by the COVID-19 pandemic are advised to take advantage of the funding from the COVID-19 pandemic.
- Activities listed under the scheme include: Agricultural value chain activities.
- Hospitality (accommodation and food services).
- Health (pharmaceuticals and medical supplies).
- Trade and general commerce,
- Renewable energy or energy efficient products and technologies.
Many other activities listed includes trading and any other profit-generating activities as may be prescribed by the CBN.
Moreover, for firms looking to take loans, the loan amount would be determined based on the activity, cashflow and industry size of the beneficiary, which is subject to a maximum of N25m for SMEs.
Loans shall be granted at an interest rate of 9.0% per annum (all charges inclusive) irrespective of the type of eligible activity financed.
Moreso, households eligible to access funds can access a maximum of N3million. But then, the working capital will be a maximum of 25 percent of the average of the previous three years’ annual turnover.
Citizens are encouraged to apply for the loan and know if they will qualify and access funds to enable them cope during this period of coronavirus pandemic.