CBN Gets 200 Applications For N300b Real Sector Support Fund | Independent Newspapers Limited
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CBN Gets 200 Applications For N300b Real Sector Support Fund

Posted: May 27, 2015 at 12:33 am   /   by   /   comments (0)

By Akinwunmi King –  Lagos


The Central Bank of Nigeria (CBN) on Tuesday, said it was appraising the over 200 applications received in respect of the N300 billion Real Sector Support  Facility (RSSF).

The Apex Bank said in a statement by its Director, Corporate Communication, Ibrahim Mu’azu that the policy objectives of the RSS Facility are to provide long-term, low-interest financing intervention in support of the real sector of the Nigerian economy to increase output, create jobs and conserve foreign exchange.

Godwin Emefiele, CBN Governor

Godwin Emefiele, CBN Governor

The CBN had on Monday, issued guidelines on the operational modalities of its N300 billion RSSF, which was established as part of efforts to unlock the potential of the real sector to engender output growth, value added productivity and job creation.

The facility according to the CBN is to be used to support large enterprises for start-ups and expansion financing needs of N500 million up to a maximum of N10 billion.

However, Mu’azu in the statement further stated that the appraisal of the applications by Nigerian SMEs for the N300 billion RSS facility was still in progress in strict compliance with the eligibility criteria of the facility.

He assured that as soon as the appraisals are concluded, recommendations would be made to management of the Bank for approval and subsequent disbursement, urging applicants for the RSSF to exercise a little patience to enable the Bank conclude the appraisals and to disregard speculations.

The sector targeted by the facility are manufacturing, agricultural value chain and selected service subsectors.

According to the guidelines, the loan amount is, minimum of N500 million up to a maximum of N10 billion for a single obligor and the facility is to be administered at an all-inclusive interest rate/charge of nine  per cent per annum payable on quarterly basis.

The CBN added that while it shall disburse the Facility to Deposit Money Banks (DMBs) at three per cent interest rate, the DMBs should have a six per cent spread.

It added that loans shall have a maximum tenor of 15 years, depending on the complexity of the project and shall terminate on December 31, 2030.

The guidelines also stipulate that the borrowers shall utilise the funds granted under the facility for the purpose for which it was granted.