CBN loan worth up to ₦2billion Naira
As Nigeria’s apex financial authority, the Central Bank of Nigeria (CBN) plays a pivotal role in regulating monetary policies and maintaining the stability of the financial system. Among its numerous initiatives, the CBN has developed several loan schemes designed to support small and medium-sized enterprises (SMEs) and other key sectors of the economy. This post provides an in-depth overview of these loan programs, detailing how businesses can leverage them for growth and expansion.
Agri-Business Small and Medium Enterprises Investment Scheme (AGSMEIS)
The AGSMEIS is an intervention scheme aimed at empowering SMEs in various sectors, including agriculture, education, and manufacturing. This program offers loans with a low-interest rate of 5% and a repayment period of up to seven years, with a generous moratorium on the principal amount. The AGSMEIS is designed to stimulate economic growth by providing businesses with the financial resources they need to expand their operations.
Anchor Borrower’s Programme (ABP)
The Anchor Borrower’s Programme is a targeted loan scheme that provides farmers with the financial support they need to boost agricultural production. The program offers loans of up to ₦2 billion at a 9% interest rate, with a repayment period of 24 months. In addition to financial support, the ABP also provides farmers with essential inputs such as fertilizer and seeds, helping to increase productivity and ensure food security.
Commercial Agriculture Credit Scheme (CACS)
The CACS is a ₦200 billion loan facility designed to support businesses in the agro-allied sector. With a 9.9% interest rate and a repayment period of up to 60 months, this scheme is intended to accelerate the development of Nigeria’s agricultural sector, create jobs, and improve food security. Eligible businesses include those involved in crop cultivation, livestock farming, and fisheries.
Creative Industry Financing Initiative
The Creative Industry Financing Initiative is a specialized loan program that provides financial support to entrepreneurs and SMEs in the creative sectors. This initiative offers loans of up to ₦500 million at a 9% interest rate, with a maximum repayment period of 10 years. The program is designed to help creative businesses overcome the challenges of securing financing and to promote growth in the fashion, ICT, film, and music industries.
Healthcare Sector Credit Support Scheme
In recognition of the critical role of the healthcare sector, the CBN has introduced a ₦100 billion intervention fund to support businesses in this field. The scheme provides loans to pharmaceutical companies, healthcare providers, and other related businesses, with a maximum tenor of 10 years and a 9.9% interest rate. This initiative is aimed at expanding the capacity of the healthcare sector to meet the needs of the Nigerian population.
Micro, Small, Medium Enterprises Development Fund (MSMEDF)
The MSMEDF is a ₦220 billion loan facility designed to support SMEs, with a particular focus on businesses owned by women and startups. This fund offers a low-interest rate and a repayment period of up to three years. Eligible businesses include those in agriculture, education, healthcare, manufacturing, and other sectors identified by the CBN.
Non-Oil Export Stimulation Facility (NESF)
The NESF is a loan scheme aimed at promoting the growth of Nigeria’s non-oil export sector. This facility provides loans of up to ₦5 billion at a 9% interest rate, with a maximum repayment period of 10 years. The scheme supports businesses involved in the production, transportation, and export of goods, helping to diversify the country’s revenue base.
Paddy Aggregation Scheme (PAS)
The Paddy Aggregation Scheme is a short-term loan facility designed to support rice millers in purchasing paddy for processing. This scheme offers loans of up to ₦2 billion at a 9% interest rate, with a repayment period of 12 months. The PAS ensures that rice millers have a steady supply of paddy throughout the year, enabling them to meet the demand for processed rice.
Real Sector Support Facility (RSSF)
The RSSF is a ₦300 billion fund aimed at boosting 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 is given to businesses in the agro-business, manufacturing, and mining sectors.
Eligibility and Application Process
Businesses that engage in productive activities across various sectors are eligible to 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 approval.
