The Central Bank of Nigeria (CBN), working with the Bankers’ Committee, developed the Creative Industry Financing Initiative (CIFI), to create jobs and boost employment in Nigeria, particularly among the youths. The initiative targets four key areas, namely:
- Information Technology.
- Movie Production and Distribution.
Under the scheme, practising or aspiring Small Business Owners can get long-term and low-interest financing of up to N3 million as Software Engineering Students, N30 million as Movie Production outfits and N500 million for a Movie Distribution business. Proceeds of the loans can be used for rental or service fees for Fashion and Information Technology businesses, and equipment, training and rental or service fees for Music businesses.
A Student Software Developer can get N3 million at an interest rate of nine percent, repayable monthly in three years, with a moratorium of nine months, from date of disbursement. Equity contribution is not required and the loan is secured with University Degree and NYSC Certificate, a credible guarantor and personal guarantee of the borrower. There is preference for areas with low penetration of information technology.
A Movie Producer can get N50 million at an interest rate of nine percent, repayable quarterly in 10 years, with a moratorium of 24 months from date of disbursement. The loan requires a minimum equity contribution of 30 percent, secured by legal mortgage, all asset debenture, credible guarantor and the borrower’s personal guarantee. MA minimum of three years of relevant experience is essential and preference is for areas with low cinema penetration.
A Movie Distributor can get N500 million at an interest rate of nine percent, repayable quarterly in 10 years, with a moratorium of 24 months from date of disbursement. It requires a minimum equity contribution of 30 percent, secured by legal mortgage, all asset debenture, credible guarantor and personal guarantee of the borrower. A minimum of three years of relevant experience is essential. There is preference for areas with low cinema penetration.
For Fashion, Information Technology and Music enterprises, the loan is monetised for equipment purchase, and rental or service fees. Interest rate is nine percent, repayable quarterly in 10 years, with a moratorium of 36 months from date of loan disbursement. There is a minimum equity contribution of 20 percent. The loan is secured by mortgage debenture, legal mortgage, lien on stock of trade and equipment acquired with it. The borrower must also provide three referrals from recognised sponsors or bodies or organisations and must have three years of relevant experience.
Other requirements to access the creative industries loan are:
- Comprehensive Business Plan.
- Bank Verification Number.
- Brief on Directors/Shareholding.
- Credit Reports for the company and its Directors.
- Proposed schedule of fund disbursement.
- Proposed schedule of fund repayment.
- Three years audited accounts for existing companies.
- Statement of affairs for start-ups or businesses less than three years in existence.
Are you a Fashion Designer, Music Producer or Distributor, Movie Producer or Distributor, Information Technology Specialist or Student Software Developer? Is your existing or proposed business involved in fashion or music or movies or information technology? Is your business registered with the Corporate Affairs Commission? If you answer yes to foregoing questions, you are eligible for the creative industries loan. You are required to submit your application through your bank.