COVID-19 Targetted Credit Facility: CBN disburses N69 Billion to 140,000 Household, Businesses

The Governor of the Central Bank of Nigeria, Mr Godwin Emefiele, has on Tuesday, during the 13th Conference opening Ceremony of the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja, disclosed that N69 Billion out of the N100 Billion earmarked as COVID-19 Targetted Credited Facility Loan to Households and Small and Medium Entreprise Businesses severely affected by the COVID-19 Pandemic has been disbursed.

Recall that in a bid to cushion the effect of the COVID-19 Pandemic on vulnerable Households and Small Businesses in Nigeria, the Federal Government in April, 2020 introduced the Targetted Credited Facility Palliative, a Loan of up to N3Million per beneficiary which is disbursed by the NIRSAL Microfinance Bank at 5% interest rate for the 1st year and 9% interest rate for subsequent years for 3years maximum duration.

Mr Emefiele noted that N50 Billion was initially budgeted for the program but was increased to N100 Billion following a realisation by the Federal Government, how the Pandemic and Lockdown have negatively impacted Households and many small business owners in Nigeria of which 140,000 Households and SMEs have benefited from the program.

"We initially planned for N50bn to be disbursed. As we saw there are more and more need by households impacted by the pandemic, the CBN took a decision to increase the size of that intervention fund from N50bn to N100bn. And today close to N69bn of that loan has been disbursed to over 140,000 households and businesses.”

The early applicants of the Loan in April and May, 2020 began recieving their Credit Alerts in June, 2020 while application officially ended early July, 2020.

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The NIRSAL MicroFinance Bank has cleared that applicants who have recieved approval messages for their intended loans would continue to receive funds noting that the loan approval follows processes which must be adhered to before CBN authorises disbursement of the loan.

Meanwhile, the June and July Applicants of the Loan, in their Social groups, have lamented their non-inclusion in the loan disbursements noting that many of those who continued to sing praises of joy, were mainly the April and May Applicants.