Details of CBN’s new intervention schemes for non-interest financial institutions

The Central Bank of Nigeria (CBN) has recently launched a total of eleven intervention schemes aimed at increasing access to finance by non-interest financial institutions.

A circular that was signed by the apex bank’s Director in charge of the Financial Policy and Regulation Department, Kevin Amugo, said the overall objective of these interventions is to promote financial inclusion in the country.

Also, Here are the intervention schemes

• Non-Interest Guidelines for Accelerated Agriculture Development Scheme (AADS)
• Non-Interest Guidelines for Intervention in Textile Sector
• Guidelines for the operation of the Agri-business, Small and Medium Enterprise Investment Scheme (AGSMEIS) for
• Non-Interest Financial Institutions
• Non-interest Guidelines for Non-oil Export Stimulation Facility
• Non-interest Guidelines for Anchor Borrowers’ Programme
• Non-interest Guidelines for Real Sector Support Facility Revised Guidelines.
• Non-interest Guidelines for the operation of the Credit Support for the Healthcare Sector
• Modalities for the implementation of the Creative Industry Financing Initiative (Non-interest version)
• Non-interest Guidelines for the implementation of the N50 billion Targeted Credit Facility

Further Details:

Note that each of these intervention schemes has various purposes and objectives.

The first scheme, for example, is aimed at reducing unemployment in Nigeria by funding agriculture production initiatives that will engage as much as 370,000 youths over the next three years.

Similarly, the Non-Interest Guidelines for Intervention in Textile Sector is intended to resuscitate Nigeria’s textiles industry by providing

“a N50 billion special mechanism for restructuring of existing facilities and provision of further facilities for textile companies with genuine need for intervention.”

Some of the eligibility creteria for accessing these non-interest schemes

• Beneficiaries must be Nigerian youths within the ages of 18 to 35 years
• Sign an undertaking to abide by the terms of agreement of the Scheme
• Any textile company with an existing facility in the books of BOI under the CTG scheme is eligible to apply
• Textile companies with existing facilities in DMBs/NIFIs can apply
• Textile companies that are not participating under the SME/RRF can also apply

The backstory

Recall that back in June this year, Nairametrics reported that the apex bank had unveiled a framework that will integrate a non-interest window in all its intervention programmes aimed at supporting businesses and households that have been impacted negatively by the COVID-19 pandemic.

Also, A statement by the CBN had specifically noted that the integration will focus mainly on its Anchor Borrowers’ Programme (ABP) as well as the Targeted Credit Facility (TCF).

A previous article had also explained that “a non-interest window operation is defined as part of a conventional financial institution (which may be a branch or a dedicated unit)

that provides fund management (investment accounts), financing, investment and other banking services that are Shariah-compliant,”

according to the CBN’s guidelines on Non-Interest Window which may be found here.

However, Source: Nairametrics