Central Bank of Nigeria Real Sector Support Facility (RSSF)
In a bid to unlock the potentials of the real sector and engender output growth, value added productivity, and job creation, the Central Bank of Nigeria (CBN) launched the N300 billion Real Sector Support Facility (RSSF). The major purpose of the initiative is to support large enterprises for startups and expand financial needs of N500 million up to a maximum of N10.0 billion. Union Bank is one of the Participating Financial Institutions (PFIs) collaborating with the Central Bank of Nigeria to spearhead the scheme.
With key focus on the real sector, part of the major objectives of the Facility include improved access for Nigerian small and medium enterprises to get funds geared towards the development of the manufacturing sector, agricultural value chain and services sub sector of the Nigerian economy. Diversifying the revenue base of the Nigerian economy, increasing foreign exchange earnings, as well as ensuring inputs for the industrial sector, are equally some of the reasons for establishing the program. The program also meets its objectives of increasing output and generating employment for the teeming Nigerian population.
Target Areas for the CBN RSSF
Partnering with financial institutions like Union Bank, the major target for this project are all businesses involved in the manufacturing and construction sectors. See some of the subsections covered by the facility below
- Businesses involved in the production and processing of tangible goods
- Firms involved in fabrication and deployment of plants and machinery to deliver goods and also facilitate economic activities in the real sector. It is important to state that such entities must not be involved in the financial services industry
- Agricultural Value Chain (non-primary production)
Union Bank in its bid to promote entrepreneurship is key PFI for this project. Features attached to this Facility include:
- 9% interest rate
- Maximum loan limit of N5 billion
- Maximum loan tenor of 7 years
Central Bank of Nigeria Commercial Agriculture Credit Scheme (CACS)
The Central Bank of Nigeria in its developmental role, partnered with the Federal Government of Nigeria to establish the Commercial Agriculture Credit Scheme. Promoting commercial agricultural enterprises in Nigeria which is a key sub-component of the Federal Government of Nigeria Commercial Agriculture Development Programme (CADP) is key purpose for the formation of the CACS. Other special initiatives of the CBN will be complemented by this Fund towards providing concessionary funding for agricultural schemes such as the Agricultural Credit Guarantee Scheme (ACGS) which is mostly focused on small scale farmers, Agricultural Credit Support Scheme, Interest Draw-back scheme, among others.
Further, this project is aimed at fast tracking the development of the agricultural sector of the Nigerian economy through provision of credit facilities to commercial agricultural ventures at a single digit interest rate. Part of the objectives for the CACS also include enhancement of national food security by increasing food supply and effecting lower agricultural produce and product prices, thereby facilitating low food inflation. To ensure farmers exploit the potentials of the agricultural sector, the program ensures the reduction of cost of credit in agricultural production. Some of the general objectives of the project include increase in output, creation of employment, provision of input on a sustainable basis for the industrial sector, increase in foreign exchange earnings, and diversifying the revenue base of Nigeria’s economy.
This platform is open to all agricultural businesses in Nigeria. Its features include:
- Interest rate of 9%
- Maximum loan limit of N2 billion
- Maximum tenor of 5 years
Featured Image Source: Union Bank