Entrepreneurship: Four steps to access CBN’s fund for creative industry

Are you an entrepreneur with an existing business or start-ups in the Fashion, Information and Communication Technology (ICT), Entertainment (music and movie) sectors of Nigeria’s economy?

Is your business growth stunted or you’re finding it difficult to actualise your ideas or dreams because of lack of funds?

Relax! I’ve got some good news for you.

The Central Bank of Nigeria (CBN), in collaboration with the Bankers’ Committee, is offering you a chance to grow your business and actualise your great ideas, as part of efforts aimed at boosting job creation in Nigeria, particularly among the youth.

Code-named ‘Creative Industry Financing Initiative (CIFI),’ the aim is to harness the entrepreneurial potentials of youths especially fashionpreneur, software engineer/developer or software engineering student, music/movie producer and music/movie distributor, thus contributing their quota to the nation’s economic development.

Funded from the Agri-Business Small, and Medium Enterprises Investment Scheme (AGSMEIS), an initiative of the Bankers’ Committee, with a seed fund of N22.9 billion, it sets to provide access to low-cost and sustainable financing by entrepreneurs and investors in the Nigerian creative and ICT sub-sectors.

Below are four steps to access the funds:

1. Prepare your business plan or statement on how much you want for your business. According to the apex bank, Software Engineering Student can get up to N3 million; Movie Producer can get about N30 million; Movie Distributor gets N500 million – all repayable for a maximum of 3 years, 10 years and 10 years respectively, with a maximum interest rate of 9.0% per annum (all charges inclusive).

For those in the Fashion, ICT and Music sub-sector, the amount may vary but the interest rate is pegged at a maximum 9.0% per annum (all charges inclusive) for a 10 years (maximum) tenor each.

Don’t forget, a good business plan is essential to accessing the fund.

2. Go to any bank of your choice to access the fund, as all deposit money banks operating in Nigeria are co-sponsors of the initiative.

Once you get there, the bank will provide you with the documentation requirements for accessing any of the loans. Note that the documentation requirements shall be as acceptable by the respective bank for credit requests by its customers.

3. Tell your chosen bank how much you need and fill the forms provided by the bank. Once the bank carries out its due diligence on your application and documentation submitted, you will be issued offer letter, which contains repayment schedules and other loan terms, if your application is successful.

4. Kindly accept the offer in writing and meet all conditions specified in the offer letter attached to the loan. The bank will then forward your applications with copies of the offer letter to the Director, Development Finance Department, Central Bank of Nigeria, for consideration and release the total amount to the bank to be disbursed to you within ten (10) days of receipt of funds from the CBN.

Note that the bank bears the credit risk and shall be responsible for monitoring the performance of the loan facility disbursed to you. So, cultivate a good business relationship with your chosen bank and kick-start your business on the path to greatness.