The Covid 19 pandemic affected the world in no small way, and it did not only the daily activities of people but the world’s economy reduced drastically.

To crown it all, this Novel CoronaVirus dealt with many countries, especially Nigeria, because it struck when people least expected it.

In Nigeria, many families found it hard to feed well while some businesses crumbled.  At the time of the pandemic, the Federal government, through the Central Bank of Nigeria, decided to run to the aid of its citizens by releasing credit facilities.

In this article, we will explain the meaning of a targeted credit facility, how to apply for it, and everything you need to know about it. Be sure to read this article to the end.

Overview Of Targeted Credit Facility

We noted earlier that the advent of the Novel CoronaVirus, popularly known as Covid 19, disrupted the lives of Nigerians and the world.

In Nigeria, people had to go on a total lockdown which made many unable to fend for themselves and their families. Also, many businesses folded due to the failed economy hence, the loss in capital and profits.

These outcomes have had severe consequences on households’ livelihoods and business activities, resulting from the drop in global demand, declined consumer confidence and slowdown in production

Seeing this, the Federal government decided to help households and businesses cushion themselves against the pandemic hence, the release of the N50 Billion Targeted Credit Facility (TCF) by the Central Bank of Nigeria.

By targeted, we mean that the funds are available only to specific people. Yes, not everyone can access it. Who can access it, and how can I access the TCF?

If you are asking any of these questions, then you have to take this article seriously because we have answered those questions in the later part of this article.

Objectives Of The Targeted Credit Facility.

The Central Bank of Nigeria had three solid objectives for the N50 Billion TCF, which are (as found on the N50 Billion document);

  1. To help cushion the adverse effects  of COVID-19 on households and MSMEs;
  2. To support households and MSMEs whose economic activities have been significantly disrupted by the COVID-19 pandemic.
  3. And to stimulate credit to MSMEs to expand their productive capacity through equipment upgrades and research and development.

Who Can Apply For The N50 Billion Targeted Credit Facility?

The N50 Billion credit is not for everyone. The only sets of people who are eligible for this credit facility are;

  1. Households with verifiable evidence of livelihood adversely impacted by COVID-19; and
  2. Existing enterprises with verifiable evidence of business activities adversely affected as a result of the COVID-19 pandemic.
  3. Enterprises with bankable plans to take advantage of opportunities arising from the COVID-19 pandemic.

This means only households and micro, small and medium enterprises (MSMEs) who were adversely affected by the pandemic are qualified to apply for this credit facility.

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Activities Covered By The Credit Facility.

The following are the eligible activities covered by the credit facility;

  1. Agricultural value chain activities
  2. Hospitality (accommodation and food services)
  3. Health (pharmaceuticals and medical supplies)
  4. Airline service providers
  5. Manufacturing/value addition
  6. Trading
  7. Any other income-generating activities as may be prescribed by the CBN.

The Participating Financial Institutions And Functions

There are only two financial institutions that are participating, and they are also the stakeholders. They are ;

The Central Bank of Nigeria

The CBN is the chief participant in this scheme. They are to do the following;

  • Provide the seed fund for the Scheme.
  • Release funds to NIRSAL MFB for disbursement to successful applicants.
  • Review the Guidelines of the Facility as may be necessary.
  • Receive and process periodic returns from NIRSAL MFB.
  • Monitor and evaluate the implementation action of the Scheme by NIRSAL MFB.

NIRSAL Microfinance Bank (NMFB)

The NMFB is another stakeholder in this scheme. They perform the following functions;

  • Validate the status and BVN of the applicants;
  • Process and disburse funds to approved beneficiaries;
  • Maintain records of all beneficiaries and disbursements;
  • Forward periodic returns on the prescribed format of the Scheme to CBN;
  • Comply with the Guidelines; and
  • Carry out any other duties as the CBN may prescribe from time to time.

Requirements For Obtaining The N50 Billion TCF

To apply for the N50 billion TCF, you have first to present collateral which may include the stipulations below;

  • A comprehensive Insurance cover over your asset.
  • Moveable Asset(s). This must be duly registered with the National Collateral Registry (NCR)
  • Deed of Debenture for stocks
  • At least two guarantors
  • Personal Guarantee. This is for the promoter of the business.
  • Life Insurance of the Key-man. This must be tabled to Nirsal Microfinance Bank.
  • And an irrevocable domiciliation of proceeds.

Note that the kind of collateral must be given by Nirsal microfinance bank. However, you also need to provide the following documents;

  • Bank Verification Number (BVN)
  • Business registration number
  • Business plan
  • And evidence that shows that you are affected by the covid 19 pandemic.

How To Apply For The Target Credit Facility

To apply for the targeted credit facility, do the following;

  • Visit Nirsal Microfinance Bank at
  • for households and for MSMEs.
  • Scroll down until you see a button with “Apply Now.”
  • Quickly click the button, and you will be redirected to a page.
  • Then enter all the information that is required of you and submit your application.

How Much I Borrow From The TCF?

The amount you can borrow from the credit scheme depends on your category. Households can access a maximum of N3, 000, 000 loans.

MSMEs can obtain as much as N25,000,000, depending on factors like; industry, cash flow, years of operation, and others.

Meanwhile, Working capital shall be 25% of the average of the previous three years’ annual turnover. (where the enterprise is not up to 3 years in operation, 25% of the last year’s turnover will suffice).

The N50 Billion Targeted Credit Facility Interest Rate

According to the Central Bank of Nigeria;

“Interest rate under the intervention shall be5% p.a. (all inclusive)up to 28th February 2021 And after that, the interest on the facility shall revert to 9% p.a.(all inclusive) as from 1st March 2021″.

What Is The Loan Tenor?

If you are interested in working capital, you shall have a maximum of one year with no option for rollover.

Also, if it is a term loan, you shall have a tenor of not more than three years with a moratorium of not less than one year.


The N50 billion targeted credit facility is specifically for households and MSMEs adversely affected by the Covid-19 pandemic.

If you are interested and eligible, proceed to apply as soon as possible. Meanwhile, we are in the comments section to answer your questions if you have any.