Uche Usim, Abuja
The microfinance bank belonging to Central Bank funded Nigeria Incentive-based Risk Sharing System for Agricultural Lending (NIRSAL) has received 80,000 applications from Nigerians who seek a slice of N50 billion facility earmarked for Micro and Small Medium Enterprises (MSMEs).
The applications flooded in barely three weeks after the Central Bank of Nigeria released the guidelines on how to access the loan.
The Managing Director, NIRSAL Microfinance Bank, Mr Abubakar Kure, who made the disclosure in a media briefing in Abuja on Tuesday said the apex bank introduced the N50 billion Targeted Credit Facility as a stimulus package to support households and MSMEs smarting from the rampaging COVID-19 pandemic.
Based on the CBN guidelines, intending beneficiaries must be households or business concerns with verifiable evidence of livelihood adversely impacted by COVID-19; existing enterprises with verifiable evidence of their businesses being vandalized by the pestilence and enterprises with bankable plans to take advantage of opportunities arising from the COVID-19 pandemic.
The guidelines further noted that activities covered under the scheme include agricultural value chain activities; hospitality (accommodation and food services), health (pharmaceuticals and medical supplies), and airline service providers.
Others are manufacturing/value addition and trading and any other income-generating activities as may be prescribed by the CBN.
Giving a breakdown of the 80,000 applications, the NIRSAL boss revealed that 40,000 applications were from households while 30,000 applications were received from Small and Medium Enterprises.
He said the staff were working remotely to ensure that disbursements commence next week to those who met the criteria set for the fund by the apex bank.
Kure who was accompanied to the media by top officials of the apex bank and NIRSAL said: “We have over 80,000 application out of which 40,000 came from households while 30,000 is from SMEs.
“From next week, genuine applicants will start receiving alert for their loans.
“Our people are working remotely and disbursements will start next week.”
On the controversy surrounding the payment of N10,000 for business plan before the loan could be accessed, Kure said the management of the bank no longer considers having a business plan as mandatory but having a bank statement that shows the volume of business an intending beneficiary undertakes.
He said: “The issue of business plan was a requirement for SME applications as stipulated by the CBN guideline.
“In order to stem further controversy, the management of NMFB has resolved that the business plan is no longer a mandatory requirement and the third party provision of a business plan is no compulsory.
“We assure Nigerians of adhering to the guidelines as laid down by the CBN.
“In terms of loan limit, the loan amount would be determined based on the activity, cash flow and industry size of beneficiary, subject to a maximum of N25m for SMEs.
“Households could access a maximum of N3m while working capital would be a maximum of 25 per cent of the average of the previous three years’ annual turnover,” he said.
Also speaking at the briefing, the CBN Director, Corporate Communications Department, CBN, Mr Isaac Okorafor warned applicants against making payments for business proposals.
He said the CBN and NIRSAL MFB were determined to ensure that all intervention programmes by the apex bank cascade to all classes of Nigerians, as everyone currently feels the aches of the COVID-19 catastrophe.
He warned that the fund was not a grant, advising intending beneficiaries to work hard and repay the loan based on the terms of engagement.
“This is not a gift. It’s a loan and beneficiaries should pay back so that others can benefit,” he stated.
The N50 billion intervention fund comes from the Micro, Small and Medium Enterprises Development Fund.