CBN loan worth up to ₦2billion Naira
The Central Bank of Nigeria (CBN) stands as Nigeria’s premier financial institution, overseeing the nation’s monetary policies and ensuring the stability of the financial system. Among its numerous roles, the CBN offers various intervention funds aimed at bolstering small and medium-sized enterprises (SMEs) and other key sectors of the economy. This post delves into the different loan schemes available through the CBN, highlighting the opportunities they provide for businesses to thrive in a competitive landscape.
Agri-Business Small and Medium Enterprises Investment Scheme (AGSMEIS)
The AGSMEIS is a flagship intervention program designed by the Federal Government and administered by the CBN to support SMEs. This scheme provides loans with a low-interest rate of 5%, a long repayment period of up to seven years, and a moratorium of up to 18 months on the principal amount. The scheme targets businesses in agriculture, education, manufacturing, and service sectors, offering them the financial support needed to create jobs and spur economic growth.
Anchor Borrower’s Programme (ABP)
Under the Anchor Borrower’s Programme, farmers have access to loans without the need for collateral. The program also supplies essential farm inputs such as fertilizer and seeds. With a maximum loan amount of ₦2 billion and a 9% interest rate, the ABP is geared towards increasing agricultural productivity. Eligible businesses include those involved in agriculture, with a particular focus on crops like maize, rice, and cotton.
Commercial Agriculture Credit Scheme (CACS)
The CACS provides up to ₦200 billion in loans to agro-businesses, with a focus on rapid agricultural development. This scheme, with a 9.9% interest rate and a repayment period of up to 60 months, is tailored for businesses engaged in crop cultivation, livestock, and fisheries. The goal is to enhance food security and create employment opportunities within the agricultural sector.
Creative Industry Financing Initiative
The Creative Industry Financing Initiative supports entrepreneurs and SMEs in the creative sectors, including fashion, ICT, film, and music production. The initiative offers loans of up to ₦500 million at a 9% interest rate, with a maximum repayment period of 10 years. This program aims to overcome the challenges faced by creative businesses in securing financing, thus fostering growth in this dynamic industry.
Healthcare Sector Credit Support Scheme
In response to the healthcare needs of the nation, the CBN has introduced a ₦100 billion intervention fund for the healthcare sector. This scheme supports pharmaceutical companies, healthcare providers, and related businesses across the value chain, enabling them to expand their capacity to serve the Nigerian population. Loans under this scheme have a maximum tenor of 10 years, with a 9.9% interest rate.
Micro, Small, Medium Enterprises Development Fund (MSMEDF)
The MSMEDF provides up to ₦220 billion in loans to SMEs, with a special focus on businesses owned by women and startups. The fund offers a one-digit interest rate and a repayment period of up to three years. Eligible businesses include those in agriculture, education, healthcare, and manufacturing.
Non-Oil Export Stimulation Facility (NESF)
To diversify Nigeria’s revenue base, the NESF provides financing for non-oil export businesses. This scheme offers loans of up to ₦5 billion, with a maximum repayment period of 10 years and a 9% interest rate. The facility supports the entire export value chain, from production to logistics, enabling businesses to compete globally.
Paddy Aggregation Scheme (PAS)
The PAS is designed to support rice millers in purchasing paddy for processing. This short-term loan facility offers up to ₦2 billion at a 9% interest rate, with a repayment period of 12 months. The scheme ensures a steady supply of paddy for rice mills throughout the year.
Real Sector Support Facility (RSSF)
The RSSF is a ₦300 billion fund aimed at enhancing industrial output, creating jobs, and diversifying Nigeria’s economic base. This facility offers loans for asset acquisition and working capital, with a maximum tenor of 15 years and a 9% interest rate. Priority sectors include agro-business, manufacturing, and mining.
Eligibility and Application Process
Businesses involved in productive activities across various sectors can apply for these CBN intervention funds. Applicants must be registered with the Corporate Affairs Commission (CAC) and apply through participating financial institutions. The bank will assess the business’s potential before forwarding the application to the CBN for final approval.
