The Central Bank of Nigeria (CBN) with the
Banker’s Committee has taken a remarkable step to further boost the economy with the advent of the Creative Industry Financing Initiative (CIFI).
This initiative is set up to provide SMEs easy access to loans up to N500 million. The CBN, via the CIFI official document on its website, stated that the initiative is aimed at increasing job creation in Nigeria, especially among the youths.
Earlier in the year, the Bankers Committee of the CBN held its 342nd meeting where an agreement was reached to promote funding geared towards the development of the creative sector of the Nigerian economy.
Mr Ahmed Abdullahi, the Director, Banking Supervision Department, CBN, to journalists after the meeting, revealed that the decision to aid the creative industry was instigated by the assurance of the power the sector wields in the creation of jobs, reduction of poverty, and bringing about inclusive growth for the nation.
Also, Herbert Wigwe, the Managing Director of Access Bank, said,
“The Bankers Committee after a lot of research identified the creative and IT sectors as critical sectors to support social and inclusive growth in Nigeria. We’ve basically found out that the sector would generate a significant amount of employment given how Nigerians involved in the creative sector have done well in music and others.”
He further said the committee has planned a single digit interest rate of 9.0% per annum for beneficiaries of the initiative.
Qualification To Access The Loan
To benefit from CIFI, interested persons must have businesses in Fashion, Information Technology, Movie production, Movie distribution, Music, and Software Engineering student loan, which will enable them to submit proposals stating how much is needed for the business venture.
Furthermore, loans can be accessed at any bank desired by the applicant with interest rate still within the single digits. The loans and payback time vary with the businesses; Software engineering students have access to a maximum of N3 million repayable within three years, a maximum of N30 million naira for the Movie production business repayable within ten years, a maximum of N500 million naira for the Movie Distribution business payable within 10years.
Covers for rental/service fees for Fashion and Information Technology business (payable within 10yrs), also covers tour training fees, equipment fees and rental/service Music business (payable within 10yrs)