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Artisans to receive collateral-free N220bn CBN loan

Artisans to receive collateral-free N220bn CBN loan

- The Central Bank of Nigeria has set aside N200bn to be disbursed as loans to artisans

- The loans are collateral-free and would be accessed through cooperative organisations

- The apex bank has also called on the youth to embrace farming activities and make money out it

The Central Bank of Nigeria (CBN) says it has set aside N220 billion to be disbursed as loans to cooperative organisations, under the Micro Small and Medium Enterprises Development Fund (MSMEDF).

Isaac Okorafor, director, Corporate Communications Department of the CBN, announced the plan while addressing journalists in Gombe on Monday, September 3, during the bank’s programme on Promoting Financial Stability and Economic Development, NAN reports. gathers that he said the loan was set specifically aside to encourage artisans, including people into vulcanising works, hair dressing and barbing among others, especially those who employed others to work with.

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“If you empower this group of people, the economy will move faster because they will also employ others," he said.

He added that they were discouraged to apply for the loan because they would not be able to access such in commercial banks, where they needed to have collateral.

“This is the reason why we made the provision for this loan for them to access through their cooperative organisations. All they need to do is to open an account with a bank, operate it for sometime and apply. The loan is without collateral and the interest is only nine percent," he said.

Okorafor also called on the youth to embrace farming activities and make money out it.

“In CBN, we do not give grant to people, but we show you the way to follow and make money,” he said.

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Meanwhile, previously reported that the Central Bank of Nigeria, under the auspices of the bankers’ committee, had concluded plans to use the bank verification number of customers to blacklist loan defaulters from accessing further loans in the nation’s banking system.

The CBN governor, Godwin Emefiele, made the disclosure at the end of a two-day annual retreat of the bankers’ committee in Lagos.

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