The Director General, Lagos Chambers of Commerce and Industry (LCCI), Mr Muda Yusuf has commended the Central Bank of Nigeria (CBN) and Bankers committee increase youth job creation with Creative Industry Financing Initiative (CIFI) loan.
The CBN had issued a circular that under the CIFI loan initiative, beneficiaries could get up to N500million loans at nine per cent interest rate.
It noted that the creative industries that could apply were fashion, Information Technology, movie production, movie distribution, music and software engineering student loan.
Speaking on this development, he said, “It is a good thing to support the creative industry with finance because the sector has a lot of personnel and also one of the fastest growing sector in the country where we have lots of young people and job creations.”
He explained that the initiative going to working despite numerous challenges facing the creative industry and the nation’s economy at large.
According to him, “It can work, the challenges can be tackled, be it policy, infrastructure, institution, regulatory. There is no sector that is not facing challenge, but working with the CBN and other operators, I think it can tackled.
“Operators should be able to tell the government what the issues are and how they can be handled. What is clear is that we have the talents that can drive the industry, and the industry presents creative people.
“The whole idea is that there should be engagement between the sector. Just as CBN engages with manufacturers, farmers they should also do the same with youths that know what the challenges are and see how to tackle it together.”
He added, “Software engineering student can get a loan of up to N3million, N30million for movie production business, N500million for movie distribution business, cover your rental/service fees for fashion and
Information Technology business, cover your training fees, equipment fees, and rental/service fees for music business.”
The CBN advised interested applicants in the creative industry to submit applications to their banks for approval and disbursement.
It also urged them to prepare the business plan or statement on how much they required for the business. According to the CBN, the banks will discuss the request and provide the money.
“The maximum interest rate of nine per cent per annum (all charges inclusive) is applicable to all loans,” it stated.
On the period for the repayment of the loan, it said, “For software engineering student loan, it is a maximum of three years; for movie production and distribution, it is a maximum of 10 years; for fashion, Information Technology and music, it is a maximum of 10 years.”