Real Sector Support Facility through Differentiated Cash Reserve requirement (RSSF-DCRR)

Development Finance | Agriculture | Manufacturing | MSMEs | Health | Energy/Infrastructure | Financial Inclusion | National Collateral Registry | Export

The Central Bank of Nigeria in August 2018 established a N300 billion Real Sector Support Facility (RSSF) in a bid to unlock the potential of the real sector to engender is to support large enterprises for startups and expansion financing needs of N500 million up to a maximum of N10.0 billion.

OBJECTIVES

• To increase the flow of credit to the real sector of the economy in order to consolidate and sustain economic recovery
• Increase output, generate employment, diversify the revenue base, increase foreign exchange earnings and provide inputs for the industrial sector on a sustainable basis.

HOW TO APPLY

• Obligor approaches PFI of its choice and applies for the Fund
• Obligor provides the required documents (including collateral)
• The PFI appraises the application, approves and forwards the request to CBN for release of funds
• SMEFO receives the application, appraise and process for Management approval
• CBN management approves for disbursement to the obligor through the PFI
• Offer Letter and funds are released to the PFI for on lending to the obligor.
• Obligor's account shall be credited upon meeting conditions precedent to draw down.
• The obligor accesses the funds at an "all-in" interest rate of 9.0% p.a. (to be shared- 7% to the PFI and 2% to CBN)
• The Obligor repays the loan as and when due to the PFI plus accrued interest
• The PFI transfers principal and interest repayments to the CBN on quarterly basis
• The CBN and PFI embark on periodic on-site project monitoring exercise to verify the project (inclusive of fund disbursement, fund utilization and status of the project) and report the outcome (including challenges and proposed recommendations) to Management.