In an effort to bridge the funding gap in the creative industry and also boost job creation, the Central Bank of Nigeria in collaboration with the Banker’s Committee recently introduced a Creative Industry Financing Initiative (“CIFI”). The CIFI is specifically aimed at funding businesses in the creative industry by providing loans in the areas of fashion, information technology, movie production, movie distribution, music and software engineering.
The available loan sum varies from between N3 million to N500 million with a single digit interest rate of 9% per annum (all charges inclusive) and a repayment period of between 3 to 10 years. The application process for accessing loans under the CIFI is also simplified as interested applicants are required to submit their applications to any bank of their choice for approval and disbursement.
In the past, creatives have had a difficult time accessing funds as projects in the creative industry are generally not considered as being bankable, particularly in respect of small and medium-scale enterprises. The CIFI is therefore a welcome and commendable development that will bridge the glaring financing gap in the creative industry.
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