In 2019, the Central Bank of Nigeria (CBN) in collaboration with the Bankers’ Committee developed a Creative Industry Financing Initiative (CIFI), also known as Creative Industry loan to boost job creation in Nigeria, especially among young people, who are the most active in the creative industry.
The aim according to CBN, is to improve access to long-term low-cost financing for entrepreneurs and investors in the Nigerian creative and information technology (IT) sub-sectors.
Below is how you can benefit and access the CBN Loan for the Creative Industry 1. Your Business Must be in the following areas, namely: i. Fashion ii. Information Technology iii. Movie Production iv. Movie Distribution v. Music and vi. Software Engineering Student Loan
Amount of Loan you can Access for Business You can get a loan of up to: a) N3 million for Software Engineering Student b) N30 million for Movie Production business c) N500 million for Movie Distribution business d) Cover your rental/service fees for Fashion and Information Technology business e) Cover your training fees, equipment fees, and rental/service fees for the Music business
REQUIREMENTS Though requirements might vary a little from bank to bank, besides being part of the creative industry (fashion, music, movies, and information technology), you are still expected to provide the following – Registration with the Corporate Affairs Commission – Comprehensive business proposal – Clean Credit Bureau Report with no unpaid obligations – Satisfactory CRMS report of owners, sponsors and directors
APPLICATION PROCESS – Go to any bank of your choice to access the fund. – Tell your bank how much you need. – Your bank will discuss your request and provide you the money
INTEREST RATE AND PERIOD FOR REPAYMENT The maximum interest rate of 9.0% per annum (all charges inclusive) is applicable to all loans. a) For Software Engineering Student Loan, it is a maximum of three years b) For Movie Production and Distribution, it is a maximum of ten years c) For Fashion, Information Technology (IT) and Music, it is a maximum of ten years