CBN Increases SME Loan Intervention Fund to N300 Billion, Disburses n149.21 Billion

The Central Bank of Nigeria (CBN) has taken significant steps to support Small and Medium Enterprises (SMEs) and households during these challenging times.

In a recent announcement, the CBN revealed its decision to double the Targeted Credit Facility (TCF) from N150 billion to an impressive N300 billion.

In a significant move to bolster the growth and development of Small and Medium Enterprises (SMEs) in Nigeria, the Central Bank of Nigeria (CBN) has announced an increase in the SME loan intervention fund to N300 billion.

This move aims to alleviate the financial burdens faced by businesses and individuals impacted by the COVID-19 pandemic.

This expansion of financial support underscores the CBN’s commitment to fostering economic empowerment and job creation through SME financing initiatives.

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The CBN’s decision to increase the SME loan intervention fund is part of its ongoing efforts to stimulate economic recovery and promote entrepreneurship in the country.

According to recent data from the CBN, N149.21 billion has already been disbursed from the SME loan intervention fund to various beneficiaries nationwide.

This significant disbursement reflects the CBN’s proactive approach to providing accessible and affordable financing to SMEs, enabling them to expand their operations, invest in new projects, and contribute to national development.

Speaking on the initiative, the Governor of the Central Bank of Nigeria, emphasized the importance of SMEs in driving economic development and job creation.

He highlighted the CBN’s commitment to providing continuous support to SMEs through targeted interventions and innovative financing programs.

“The SME sector is a critical engine of economic growth and job creation in Nigeria. By increasing the SME loan intervention fund to N300 billion and disbursing N149.21 billion to date, we are demonstrating our unwavering commitment to supporting SMEs and promoting inclusive economic growth,” the Governor stated.

The CBN’s SME loan intervention fund is designed to provide affordable financing to SMEs across various sectors of the economy, including agriculture, manufacturing, services, and technology.

The fund offers flexible repayment terms, competitive interest rates, and simplified application processes, making it easier for SMEs to access the financial support they need to thrive and expand their businesses.

In addition to increasing the SME loan intervention fund, the CBN has implemented various initiatives to support SMEs, including capacity-building programs, technical assistance, and market access.

These initiatives aim to equip SMEs with the necessary skills, knowledge, and resources to succeed in today’s competitive business environment.

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As Nigeria continues to navigate the economic challenges posed by the COVID-19 pandemic and other global uncertainties, the CBN remains committed to supporting SMEs as key drivers of economic recovery and resilience.

The increase in the SME loan intervention fund to N300 billion reflects the CBN’s proactive approach to addressing the financing needs of SMEs and promoting sustainable economic growth across the country.

For SMEs seeking access to affordable financing and support, the CBN encourages them to explore the various funding opportunities available through its SME loan intervention fund and other targeted initiatives.

Disbursement Details

Under the TCF, the CBN has disbursed a total of N149.21 billion to 316,869 beneficiaries across the country.

This substantial injection of funds has been instrumental in supporting struggling businesses and providing relief to households facing financial challenges.

Digital Application Process

In line with the growing need for digital solutions, the application process for the TCF was conducted online.

Prospective applicants were required to submit limited paperwork, streamlining the process and ensuring efficient access to funds.

The success of the TCF has been evident in its positive impact on output growth.

As a result, the CBN has decided to double the fund to approximately N300 billion.

This expansion will accommodate even more beneficiaries and boost consumer expenditure, ultimately stimulating the economy.

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