Real Sector Support Facility through Differentiated Cash Reserve Requirement
The Central Bank of Nigeria in August 2018, established a ₦300 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 ₦500 million up to a maximum of ₦10 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.
Managing Agent - CBN
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 the 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 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 the 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.
FREQUENTLY ASKED QUESTIONS
| Questions | Answers |
|---|---|
| How can I apply? | You apply only through your Bank |
| What is the interest rate? | 9% |
| What is the maximum amount one can apply? | ₦10 Billion |
| Is there a provision for moratoium | Yes, not more than two years |
| What is maximum amount? | ₦2 billion |
| What is the tenor? | Yes, not more than 10years |
| Can I do a refinancing? | No |
| Can I transfer my liability to another to another obligor? | No |
| Are all my exposure guaranteed by the CBN? | No |
| Does it support trading? | No |
| Does the facility support importation of fabric from other countries? | No |