CRC Credit Bureau Limited has embarked on a campaign to increase awareness on the various Central Bank of Nigeria’s intervention funds that are available to Nigerian businesses before and during the COVID-19 era.
This was at a webinar, last month, themed ‘CBN Intervention Funds: Access, Impact and Prospects,’ under the ‘You and Credit’ webinar series organised as part of the credit bureau’s corporate social responsibility to educate individuals and businesses on credit and finance.
Zephaniah Chinedu Ogbonnaya, from the Anchor Borrowers Programme, Development Finance Department of the CBN highlighted the objectives of the various funds which include, encouraging exportation, expanding output of agriculture and the manufacturing services sector to conserve foreign reserves.
Ogbonnaya introduced some of the various funds, and how they are accessed by businesses in different sectors of the Nigerian economy. He also touched on the impact these funds have made on Nigerian businesses and the economy. For details on each fund, he encouraged participants at the webinar to visit the CBN website. This would furnish applicants with relevant information before approaching commercial banks for access to government funding.
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Simon Aranonu, executive director, Large Enterprises Bank of Industry listed the intervention funds available through the Bank of Industry, such as the Power and Airline Intervention Fund (PAIF). He also mentioned the objectives of each of these funds and the terms/conditions that are stipulated for each of them.
Additionally, practising responsible borrowing is a requirement that was also emphasised. Olusegun Alebiousu, chief risk officer, First Bank of Nigeria Limited recommended that Nigerian consumers and Nigerian business owners shun the attitude of referring such interventions as their share of the proverbial national cake in Nigeria. This means meeting the requirements before accessing any form of finance either through the government or financial institutions. It also implies repaying according to stipulated agreements and contract.
However, people familiar with happenings in the business community have highlighted the various challenges business owners face in accessing these funds which include, costs of the funds, their short tenure and the difficulty of even accessing these funds at all especially for small businesses.
‘Tunde Popoola, managing director and CEO CRC Credit Bureau reiterated the importance and role of credit bureaus in facilitating access to finance and their contributions in increasing the availability and accessibility of consumer and Micro Small and Medium Enterprises loans in Nigeria over the past 10 years.
“We are using every means possible to educate individuals and businesses on how to access finance and keep their credit history positive. Many Nigerians are not aware of the financial implications of keeping a positive credit history and its implications on accessing finance, even if they are government funds,” Popoola said. “We will continue to lead the charge on financial education in the credit bureau industry.”
