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The Central Bank of Nigeria (CBN) has released guidelines for the disbursement of the N300 billion Real Sector Support Facility (RSSF), wherein small and medium enterprises (SMEs) will have access to financing up to N10 billion.

According to the guidelines released by the apex bank yesterday, the facility with a nine per cent interest rate, would be used to support large enterprises for startups and expansion financing needs of N500 million to a maximum of N10 billion.

“The facility shall be administered at an all-in Interest rate/charge of nine percent per annum payable on quarterly basis. Specifically, the Central Bank of Nigeria(CBN) shall be entitled to earn three per cent as interest and the banks, a six percent spread,” the guideline stated.

The apex bank noted that the facility would only be made available to SMEs in the services, manufacturing and agricultural value chain (non-primary production) sectors and would have a maximum loan tenure of 15 years ending on December 31, 2030.

The N300 billion RSSF would also only be available to companies for long term loan acquisition of plant and machinery and for working capital.To assess the facility, the guideline stipulated that the company applying must be a member of the relevant organised private sector associations such as the Manufacturers Association of Nigeria (MAN), Nigerian Association of Small and Medium enterprises (NASME), Nigerian Association of Chambers of Commerce, Industry Mines and Agriculture (NACCIMA), Nigerian Association of Small Scale Industrialists (NASSI) amongst others.

The facility is to be assessed by the SMEs through deposit money banks and development finance institutions which would send the application to the development finance department of the CBN which is responsible for the day-to-day administration of the facility.

According to the CBN, the RSSF is part of its measures to unlock the potential of the real sector to engender output growth, value-added productivity and job creation.

By Bukola Idowu


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