How to Access CBN N50 billion Coronavirus Fund

CBN

The Central Bank of Nigeria, CBN made a Press releases on march 16, 2020 in response to the COVID-19 outbreak. The CBN Governor, Emefiele restates commitment of Central Bank of Nigeria to support household, businesses, other stakeholders to cushion the economic impact of coronavirus.

The Loan being given out would be available to some households and business after they have submitted their request and it has been accessed and approved. There were reports of some foul play with the accessing of the application for the loans but both the central bank of Nigeria and the NIRSAL MicroFinance Bank have come out to explain reasons for the misunderstandings.

The NIRSAL MicroFinance Bank is the bank charged with the processing of the loan, and the CBN has released guidelines for the implementation of the N50 billion targeted credit facility.

At the start of the process, business plans which the NMFB received from loan applicants were highly substandard and to ensure a standard and an efficient processing optional, and automated business plan was provided by a third party at a highly discounted fee to avoid applicants being charged excessively by other service providers. However, note that the business plan is NOT a mandatory requirement and intended to allow efficiency in the processing of applications sent in by SMEs and Corporate Enterprises.

The Coronavirus Disease (COVID-19) pandemic has led to unprecedented disruptions to global supply chains, sharp drop in global crude oil prices, turmoil in global stock and financial markets, massive cancellation of sporting and entertainment event, the lockdown of large swaths movements of persons in many countries, and intercontinental travel bans/restrictions across critical air routes across the world.

These outcomes have had severe consequences on households’ livelihoods and business activities, resulting from a drop in global demand, declined consumer confidence and slowdown in production.  

In this respect, the Central Bank of Nigeria (CBN) introduced the N50 billion Targeted Credit Facility (TCF) as a stimulus package to support households and Micro, Small and Medium Enterprises (MSMEs) affected by the COVID-19 pandemic.

STEP 1

Submit An Application

The process is easy. You can begin on your phone, your tablet or your laptop. Submit applications directly to NIRSAL Microfinance Bank (NMFB) with clear evidence of the opportunity or adverse impact as a result of COVID-19 pandemic.

STEP 2

Approval

We review your application and forward the application to the CBN for final approval.

STEP 3

Disbursement

CBN reviews applications and gives final approval for disbursement to NMFB

Who can access the loans

Households: Households with verifiable evidence of livelihood adversely impacted by the COVID-19

MSMEs: Existing enterprises with verifiable evidence of business activities adversely affected as a result of the COVID-19 pandemic

Corporate Enterprises: Enterprises with bankable plans to take advantage of opportunities arising from the COVID-19 pandemic

What is the interest rate?

The interest rate under the intervention is 5% p.a. (all-inclusive) up to 28th February 2021 and after that, the interest on the facility will revert to 9% p.a. (all-inclusive) as from 1st March 2021.

How long is the loan for?

Working capital will be for a maximum period of one year, with no option for rollover. Term loans have a maximum tenor of not more than three years with, at least, one-year moratorium.

How much can I access?

Households can access a maximum of N3 million

Loan amount to SMEs shall be determined based on the activity, cashflow and industry/segment size of the beneficiary, subject to a maximum of N25 million.

Working capital shall be a maximum of 25% of the average of the previous three years’ annual turnover. (where the enterprise is not up to 3 years in operation, 25% of the previous year’s turnover will suffice).