The Central Bank of Nigeria (CBN) introduced the N50 billion Targeted Credit Facility (TCF) stimulus package to support households and micro, small and medium enterprises (MSMEs) affected by the COVID-19 pandemic. The guidelines outline the operational modalities for the Scheme.

The broad objectives of the CBN N50 billion Targeted Credit Facility are:

i. Cushion the adverse effects of COVID-19 on households and MSMEs.

ii. Support households and MSMEs whose economic activities have been significantly disrupted by the COVID-19 pandemic.

iii. Stimulate credit to MSMEs to expand their productive capacity through equipment upgrade, and research and development.

Eligible beneficiaries are:

i. Households with verifiable evidence of livelihood adversely impacted by

ii. Existing enterprises with verifiable evidence of business activities adversely affected as a result of the COVID-19 pandemic.

iii. Enterprises with bankable plans to take advantage of opportunities arising from the COVID-19 pandemic.

Eligible activities under the Scheme are:

i. Agricultural value chain activities.

ii. Hospitality: Accommodation and food services.

iii. Health: Pharmaceuticals and medical supplies.

iv. Airline service providers.

v. Manufacturing/value addition.

vi. Trading.

vii. Any other income-generating activities as may be prescribed by the CBN.

The Scheme shall be financed from the CBN’s Micro, Small and Medium Enterprises Development Fund (MSMEDF).

NIRSAL Microfinance Bank (NMFB) is the eligible participating financial institution for the scheme.

The loan amount shall be determined by the activity, cash flow and industry/segment size of the beneficiary, subject to a maximum of N25 million for SMEs.

Households can access a maximum of N3 million.

Working capital shall be a maximum of 25 percent of the average of the preceding three years’ annual turnover. Where the enterprise is not up to three years in operation, 25 percent of the previous year’s turnover will apply.

The interest rate under this intervention shall be Five percent per annum, all-inclusive, up to February 28, 2021. Thereafter, interest on the facility shall revert to Nine percent, all-inclusive, with effect from March 1, 2021.

Working capital shall be for a maximum period of one year, without an option for rollover.

Term loan shall have a maximum tenor of not more than three years with, at least, one-year moratorium.

The collateral to be pledged by beneficiaries under the programme shall be as may be acceptable by NIRSAL MFB, and may include any one or more of the following:

i. Moveable asset(s) duly registered on the National Collateral Registry (NCR).

ii. Simple deposit of title documents, in perfectible state.

iii. Deed of Debenture (for stocks), in perfectible state.

iv. Irrevocable domiciliation of proceeds.

v. Two acceptable Guarantors.

vi. Personal Guarantee of the promoter of the business.

vii. Life Insurance of the Key-Man, with NMFB noted as the First Loss Payee.

viii. Comprehensive Insurance over the asset.

Repayment shall be made on an installment basis by the beneficiaries to the NMFB according to the nature of the enterprise, and the repayment schedule/work plan provided at the application stage.

Eligible households or MSMEs shall:

i. Submit applications directly to NIRSAL Microfinance Bank (NMFB).

ii. Application must, among others, contain BVN number, business registration (where applicable) and business plan with clear evidence of the opportunity or adverse impact as a result of COVID-19 pandemic.

iii. NMFB shall appraise and conduct due diligence applications.

iv. Upon satisfactory appraisal of the application, NMFB shall forward the application to the CBN for final approval.

v. The CBN reviews applications and gives final approval for disbursement to NMFB.

A corporate entity shall submit an application to NMFB with:

I. Clear evidence of the opportunity or adverse impact as a result of the COVID-19 pandemic.

ii. NMFB shall appraise and conduct due diligence on each application.

iii. Upon satisfactory appraisal of the application, NMFB shall forward the application to the CBN for final approval.

iv. The CBN reviews applications and gives final approval for disbursement to NMFB.

Periodic monitoring of projects financed under the Scheme shall be conducted by the NIRSAL MFB.

The CBN shall:

i. Provide the seed fund for the scheme.

ii. Release funds to NIRSAL MFB for disbursement to successful applicants.

iii. Review the guidelines of the facility as may be necessary.

iv. Receive and process periodic returns from NIRSAL MFB.

v. Monitor and evaluate the implementation of the scheme by NIRSAL MFB.


i. Validate the status and BVN of the applicants.

ii. Process and disburse funds to approved beneficiaries.

iii. Maintain records of beneficiaries and disbursements.

iv. Forward periodic returns on the prescribed format on the scheme to the CBN.

v. Comply with the guidelines.

vi. Carry out any other duties as the CBN may prescribe from time to time.

The exit date of this intervention is December 31, 2024.

This framework shall be reviewed from time to time, as may be deemed necessary by the CBN.

All inquiries and returns should be addressed to: Director, Development Finance Department, Central Bank of Nigeria, Abuja.