CBN to provide artisans with 220 billion naira in unsecured loans – Nairametrics
The Central Bank of Nigeria (CBN) has announced its intention to disburse 220 billion naira in the form of loans to cooperative organizations under the Micro, Small and Medium Enterprises Development Fund (MSMEDF). This was made known by CBN’s director of corporate communications, Isaac Okorafor.
Okorafor said the loan is unsecured and the interest rate is only 9%. The 220 billion naira credit facility, according to Okorafor, is intended to encourage artisans, including people who engage in vulcanizing, hairdressing and barbering, among others, especially those who employ labor. artwork.
“If you empower this group of people, the economy will grow faster because they will also employ others”, Okorafor said.
Why CBN makes the credit facility available to artisans
Commercial operators in Nigeria are often discouraged from applying for a loan because they could not access it at commercial banks, where they need collateral.
In view of the mentioned challenge, the CBN has provided a credit facility for them to access through their cooperative organizations.
The umbrella bank had in August, through its Anchor Borrowers’ Program (ABP), approved a credit facility of 14.9 billion naira to the Northeast Commodity Association (NECAS). 27,000 farmers are expected to benefit from the scheme while 75,000 hectares of land would be cultivated in the four participating states.
The credit facility has been programmed to cover all the commodities that the northeastern region of the country has the comparative advantage of producing, including rice, maize, millet, sorghum and even small ruminants, among others.
The inputs would be given to farmers in the form of loans which would have to be repaid in installments.
What is the CBN Anchor Borrower’s Scheme?
The Anchor Borrower Scheme is a CBN initiative launched in 2017, with the aim of creating a link between anchor companies and small farmers. Currently, over 80 percent of Nigerian farmers are smallholders.