The Managing Director, NIRSAL MFB, Mr Abubakar Kure, inaugurated credit facility disbursement of fund on Thursday in Abuja.

He Noted that a total of 3,256 individuals and businesses that were affected by the negative impact of the coronavirus pandemic would benefit under the first tranche of the fund disbursement.

As of April 14, over 80,000 applications had been received from businesses and individuals for the N50bn credit facility.

While he explained, he said that the bank was committed to ensuring that only individuals and businesses adversely affected by the health crisis would benefit from the fund.

He continued that through the disbursement, those to benefit would resume productive activities as the economy begins a phased reopening after the lockdown.

Adding that “The idea of this fund is to provide cash flow owing to the lockdown and the restrictions in movement of people. “The flag-off is intended to provide liquidity following cash flow issues as a result of the negative impact of COVID-19.”The CBN had introduced the N50bn Targeted Credit Facility as a stimulus package to support households and Micro, Small and Medium Enterprises affected by the COVID-19 pandemic. Based on the guidelines released by the CBN, those that can benefit from the fund are households with verifiable evidence of livelihood adversely impacted by COVID-19 and existing enterprises with verifiable evidence of activities adversely affected as a result of the COVID-19 pandemic.

According to the CBN guideline, activities covered under the scheme include agricultural value chain activities; hospitality (accommodation and food services); health (pharmaceuticals and medical supplies); and airline service providers.

Others are manufacturing/value addition; trading and any other income generating activities as may be prescribed by the CBN.

Kure warned that while the lockdown had adversely affected the economy, the amount being disbursed was not a grant. He urged beneficiaries to use the amount for the purpose it was collected for because the bank would ensure that all those who took the loans must repay what they took.

Kure said, “This is not a grant; it is a credit facility intended to cushion the impact of COVID-19 on businesses particularly the  SMEs.