CBN To Disburse COVID-19 Loan To Households, SMEs Through New Platform

Households and Micro, Small and Medium Enterprises can now access N50 billion COVID-19 relief funds of the Central Bank of Nigeria (CBN) as the CBN will be disbursing the fund through the Integrated National Association of Microfinance Banks Unified IT Platform.

The CBN N50 billion credit facility will be disbursed from the Micro, Small and Medium Enterprises Development Fund. According to report, SMEs are entitled to a maximum of N25 million loan, but its dependent on the activity, cash flow and industry size of the business. While households are qualified to access maximum of N3 million.

National Association of Microfinance Banks Unified IT platform was deployed by Inlaks for NIRSAL microfinance bank to enable financial access that will grow the Small and Medium Enterprises. It was also built to service microfinance banks on behalf of the CBN and National Association of Microfinance Banks.

There have been complaints about access to the loan. Speaking on the deployment of the IT platform which will simplify access to the funds, the Managing Director/Chief Executive Officer, African Operations, Inlaks, Femi Adeoti, said the 54 branches of NIRSAL MFB were currently connected on the platform, and the IT platform will enable a unified service.

“NAMBUIT is software as a service platform that reduces operational costs as well as improves the bank’s ability to provide necessary information to agencies such as the CBN and the NDIC. The unified platform comprises a core banking system and sub-systems for agent banking, non-interest banking, and mobile payment among other services.”

NIRSAL National Microfinance Banks is an initiative of the CBN, in collaboration with the Bankers Committee, Nigeria Incentive-Based Risk Sharing System for Agricultural Lending and the Nigerian Postal Service.

Why Households, SMEs Have Be Unable To Access Funds

AllNews had previously reported that Nigerian households and SMEs have been unable to access the COVID-19 loan from CBN through various reasons disclosed by the Managing Director of NIRSAL Microfinance Bank Plc, Abubakar Kure.

In the report, Kure said the lockdown has affected the process of facilitating the loan for applicants. He also mentioned that some applicants have been unable to provided needed requirements to obtain the loan.