CBN– the Central Bank of Nigeria in partnership with the Bankers’ Committee, in a bid to boost youth employment in Nigeria has come up with a Creative Industry Financing Initiative (CIFI). The initiative will span across fashion, information technology, movies, music distribution, and production.
Initially announced in May 2019, CIFI tends to open up access to long-term, affordable loan for creative and innovative IT-focused entrepreneurs and investors in the Nigerian. The initiative which is aimed at economic development will grant individuals in the creative and IT-focused industry access to loans of about ₦500 million at a 9% interest.
Individuals that fall under the IT sector in the tech ecosystem will be able to access ‘Student Software Development Loan’. This package will offer the software developers access to loans of about ₦3 million with a 9% interest rate for 3 years.
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The CIFI’s Student Software Development Loan will, however, be accessed by individuals who have completed their university education, and passed through the one-year compulsory National Youth Service. The qualified individuals will be requiring a guarantor, good credit history, and lastly, admission into training organizations with job placement contracts.
Applicants who meet the above requirements should approach any bank in the company of a business plan. The business plan should state explicitly the exact amount needed for the proposed business. Afterward, the bank will give the applicant all required documentation necessary to access the loan.
Applicants are required by the CBN to repay the loans from patent usage and software sales. CBN also looks forward to seeing applicants who will access this loan, build viable solutions that will scale profits and also create employment in three years.
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