Nigeria: CBN Waives Guarantor Requirement for COVID-19 Loan Applicants

Naira (file photo).

The Central Bank of Nigeria (CBN) has waived the requirement for the provision of guarantors by households and small and medium enterprises (SMEs) applying for its N50 billion COVID-19 Targeted Credit Facility.

The N50 billion package was a provision by the bank for small businesses affected by coronavirus to stay in business and not lay off workers.

According to a press release by the apex bank's spokesperson, Isaac Okorafor, the waiver is to ease the concerns of those who had fulfilled all requirements for the loan but were yet to have their accounts credited, particularly as other persons had begun to receive credit alerts.

He advised all successful applicants whose accounts have not been credited, to visit the website of NIRSAL Micro Finance Bank ( and input their account details.

The apex bank also assured that all successful applicants of the loan will be credited within 48 hours

"All successful household and SME applicants that have submitted their account details for the facility, should expect to be credited within 48 hours."

He, however, urged any successful applicant that does not receive a credit alert within 48 hours to call mobile number: 09010026900 for resolution.

Loan not grant

Mr Okorafor reiterated that the money being disbursed is loans and should not be taken as grants.

He urged eligible households and small businesses to take advantage of the stimulus package to revive their businesses and contribute to steering Nigeria away from recession.

The Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), a department of the apex bank through which the loan is been disbursed, had earlier said 80,000 Nigerians applied for the loan.

As of April 30, the apex bank had announced that no fewer than 3,256 individuals had benefited from the loan.

Based on the guidelines the CBN announced with the stimulus package on March 23, those eligible for the fund are households with verifiable evidence of livelihood adversely impacted by COVID-19 and existing enterprises with verifiable evidence of activities adversely affected as a result of the COVID-19 pandemic.

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