Central Bank of Nigeria Creative Industry Financing Initiative
In a bid to improve access to long-term low-cost financing for entrepreneurs and investors in the creative and information technology (IT) sub-sectors, the Central Bank of Nigeria in collaboration with the Bankers’ Committee launched the Creative Industry Financing Initiative (CIFI).
This project is part of efforts made by the Central Bank of Nigeria to create jobs especially for unemployed Nigerian youth. Union Bank is a key participating financial institution (PFI) for this program, and interested customers who run businesses in the Creative Industry are invited to submit application for this scheme at any branch of Union Bank in the country. The CIFI comprise four pillars, namely:
- Fashion
- Information Technology
- Movie
- Music
Businesses involved in areas such as fashion, information technology, movie production, movie distribution, music, and software engineering students are the major focus of this financial scheme. The objectives for the Creative Industry Financial Initiative include:
- To ensure entrepreneurs and investors in the Creative industry and Information Technology sub-sectors, witness improved access to low-cost and sustainable financing.
- To boost job creation in Nigeria particularly for youth.
- Harnessing the entrepreneurial potentials of youth within the Nigerian creative industry and information technology sub-sectors to foster economic growth and development of Nigeria.
- To complement other developmental initiatives of the Central Bank of Nigeria in other to accelerate financial inclusion.
The Union Bank intervention fund has some key features, which comprise of:
- 9% interest rate
- Maximum loan limit of
- N3 million naira for software developers
- N50 million naira for Fashion-minded businesses
- N50 million for Movie and Music production companies
- N500 million for Movie distribution companies
- Availability of moratorium for up to 36 months (three years).
Central Bank of Nigeria Maize Aggregation Scheme
The Central Bank of Nigeria Maize Aggregation Scheme (MAS) is an agricultural project launched by the CBN to promote the cultivation of maize and equally support its local consumption. Agricultural business owners that have an account with Union Bank are presented a perfect platform for them to move their ventures forward and promote their agro-based businesses. The scheme also presents itself as an avenue for boosting or creating more employment opportunities especially in the agricultural sector. Also, encouragement of local production and cultivation of maize is another objective of this project.
Target Businesses for the CBN MAS
Below are the major businesses that constitute the focus areas for the Maize Aggregation Scheme to enable them purchase home grown maize:
- Feed Millers
- Poultry Farmers
- Silos Operators
- Warehouse Operators
- Confectionery
As part of Union Bank’s plan to support the growth of the agricultural sector and diversification of the revenue base of Nigeria’s economy, it collaborates with CBN to dish out loans to its customers that meet the requirements and target areas for the Maize Aggregation Scheme. The key features of the scheme include:
- 9% interest rate
- Maximum loan limit of N2 billion
- Maximum loan tenor of 12 months (1 year)
Sources:
Cbn.gov NG
Unionbank NG
Featured Image Source: Unionbank NG