A Guide to the Creative Industry Financing Initiative(CIFI) for SMEs in Nigeria

Creative Industry Financing Initiative (CIFI)is a loan scheme established by the CBN to provide financing to SMEs in the agricultural and industrial sectors. The scheme aims to enhance access to credit for SMEs, promote job creation, and contribute to economic growth. Under the CIFI scheme, the CBN provides credit guarantees to participating financial institutions (PFIs) to enable them to lend to eligible SMEs in the agricultural and industrial sectors.

Small and medium-sized enterprises (SMEs) play a vital role in the Nigerian economy, but accessing financing can be a significant challenge. The Central Bank of Nigeria (CBN) established the Credit Risk Guarantee Scheme for Agricultural and Industrial Financing (CIFI) to provide loans to eligible SMEs in the agricultural and industrial sectors. In this article, we’ll provide an overview of the CIFI and how you can apply for the loan.

Objectives of CIFI

The objectives of the Initiative are:

1. Improve access to low-cost and sustainable financing by entrepreneurs and investors in the Nigerian creative and information technology (IT) sub-sectors;

2. Boost job creation, particularly among the youth;

3. Harness the entrepreneurial potentials of youth within the Nigerian creative and information technology (IT) sub-sectors for economic development; and

4. Complement other development finance initiatives of the CBN to accelerate financial inclusion.

Verticals (Focal sub-sectors)

The verticals for financing under the eligible activities shall include: i. Fashion ii. Information Technology iii. Movie iv. Music

• Verticals and Target Markets Fashion ● Designers Information Technology ● Information Technology ● Student Software Development Loan Movie ● Movie Distribution ● Movie Production Music ● Music Production (Musicians) ● Music Distribution Provided that both the activities covered and the verticals shall not violate the principles of non-interest banking and finance. For more info, click this link

Who is eligible for CIFI?

To be eligible for the CIFI loan, your business must meet the following criteria:

1. Be a registered business in Nigeria.
2. Have a valid Bank Verification Number (BVN).
3. Have a satisfactory credit report.
4. Have a viable business plan.
5. Be engaged in agricultural or industrial production, processing, or marketing.
6. Be a farmer or a cooperative society.

How to apply for CIFI

To apply for the CIFI loan, follow these steps:

1. Visit the CBN website or the website of any of the participating financial institutions.
2. Download and complete the application form.
3. Submit the completed application form and all required documents to the nearest participating financial institution.
4. Await feedback from the financial institution on the status of your application.

Required documents for the CIFI loan application

When applying for the CIFI loan, you’ll need to provide the following documents:

1. Completed application form.
2. Business plan.
3. Bank statements for the past six months.
4. Tax clearance certificate.
5. Certificate of incorporation.
6. Memorandum and Articles of Association.
7. Evidence of collateral, such as landed property or a personal guarantee.
8. Evidence of agricultural or industrial activities, such as land ownership or a machinery registration certificate.

Conclusion

Access to finance is critical for SMEs in the agricultural and industrial sectors to grow and contribute to the Nigerian economy. The CIFI loan scheme is an excellent opportunity for eligible SMEs to access low-interest loans that can help them expand their businesses. If you’re an eligible SME, follow the steps outlined in this article to apply for the loan and take your agricultural or industrial business to the next level. For more information and to apply for the CIFI loan, visit the CBN website or the website of any of the participating financial institutions.