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Recall that the CBN had released series of Guidelines with respect to accessing intervention funds for different business organisations to cushion the effects of the COVID-19 pandemic in the country. Many of these guidelines aimed at providing the procedures and modalities for accessing as well as benefiting from the approved funds. Of special interest to the CBN and to the economy is the impact of this pandemic to Micro, Small and Medium Enterprise (MSME) in the country. This subsector is characterised by huge financial gap which hinders it’s development and it’s supposed contribution to the GDP of the Nation. In recognition of the MSMEs contribution to the economy and to further improve its potentiality, the CBN as part of its developmental role and mandate of promoting a sound financial system, it launches a new amendment to the earlier Guideline for the implementation of the ₦50Billion Targeted Credit Facility (TCF) for Non-Interest MSMEs and Households. This revised Guidelines is purposely designed to complement other Banks (Non-Interest) in providing concessionary financing for hHouseholds and Enterprises affected by the impact of COVID-19 in the country

The core objectives of the ₦50Billion TCF as indicated in the Amendment to the Guidelines are:

a. to cushion the adverse effect of COVID-19 on households and MSMEs
b. to support households and MSMEs whose economic activities have been significantly disrupted by the pandemic.
c. to stimulate credit to MSMEs to expand their productivity and capacity through equipment upgrade , research and development. see paragraph 2.0 (TCF Guidelines), 2020.

As can be gleaned from from the above objectives, the targeted beneficiaries of the fund are specifically two set of Persons, they are;

1. Households or Employee whose livelihood or business has been affected by the pandemic are are willing to establish a new business enterprise
2. Micro enterprise with a minimum of 5 staff affected by the pandemic. See para. 3.0 (TCF Guidelines)
However, to fully participate in the fund, beneficiary must be able to show either or some of the evidence of layoff from employment, loss of income either by household or employee, submission of viable business proposal (in case of new business) and favourable report from a credit bureau. See para. 4.0 (TCF Guidelines).


The funds itself is a Targeted Credit Facility (TCF), as such not all businesses are covered as indicated in the Guidelines but for a specified businesses which include;

1. Agricultural related businesses
2. Hospitality (accommodation and food services)
3. Health (pharmacy and supplies)
4. Trading
5. Manufacturing/Value Addition, or
6. Any other income generating activities prescribed by CBN and are Shariah Compliant. See para. 5.0 of (TCF Guidelines)


The funds is targeted for Households and Micro Enterprise which limits the amount of funds accessible from the CBN through the PFIs. The funds can only be accessed from Non-Interest Micro Finance Banks and Deposit Money Bank of full Islamic financing or Islamic window. As for Households, the maximum fund obtainable is the sum of ₦3Million and for the repayment period of 3 years depending on the amount borrowed.
As for Micro Enterprises there is an accessible amount of ₦5Million repayable also for a period of 3 years, depending on the amount borrowed. Both HHouseholds and Micro enterprise enjoy a moratorium of 6 months. See para. 8.1 & 8.2 (TCF Guidelines)


Generally, nNon-Interest Islamic Financial Institution whether MFB or DMB do not require security for a loan (in the common law term of security), however, there are modalities deployed to ensure the repayment of this loan and which are Shariah Compliant. Some of these modes include;

a. Two Guarantors
b. Family Takaful (Islamic Insurance) policy of the beneficiary
c. Simple deposit of titiel document
d. Takaful over the Asset
e. Domiciliation of proceeds of Sale/Business. See para. 11 (TCF Guidelines)


From the foregoing, the TCF through CBN seeks to achieve economic empowerment through support for funds to the Household as well as Micro Enterprise affected by the impact of COVID-19 pandemic. It is a Non-Interest Loan based on the principle of Mudarabah. This is one of the terms used in many of the Non-Interest financing Modes. By Mudarabah, we mean a form of financing system where parties to the transaction agreed on a profit and loss sharing of the business activities based on agreed terms. It is a CBN loan accessible by all Nigerians iirrespective of your creed of beliefs.

Olasunkanmi Soliu Afeez

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100,000 SMEs To Get N50,000 Each As Stimulus Grant -Presidency



The Special Assistant to the President on Micro Small and Medium and Medium Enterprises (MSMEs), Mr Tola Johnson, says 100,000 small businesses will get N50,000 each as part of COVID-19 economic stimulus.

The Fidelinfo understands that He spoke at the inauguration of the Implementation of Survival Fund and Guaranteed Off-Take Stimulus Schemes for MSMEs yesterday in Abuja.

“The schemes will be starting with the Payroll Support; the Payroll Support targets 100,000 businesses; however the number of individuals who will benefit from this is 500,000.

“The next will be the 100,000 MSMEs grants; what the government has done is to say that there a lot of MSMEs that have been affected by the COVID-19 pandemic lockdown; so, what we are trying to do is to very quickly inject N50,000 each to 100,000 micro businesses.

“Afterward, there is a CAC (Corporate Affairs Commission) free registration; it is free for the MSMEs but the government is paying the CAC for this.

“So, what the government has done is to say to the CAC, you do this regularly to the MSMEs at about N12,000 or thereabout; give it to us at half price, we will give it to the MSMEs free.’’

He said under the National MSMEs Clinic, the vice president and the Minister of Industry, Trade and Investment have been to no fewer than 26 states.

Johnson said in the course of the clinics, it was discovered that very creative businesses were not registered.

“They will tell you they don’t have N10,000 to N12,000 to register their businesses.

“So, the government had promised that at some point, we will do and I think the opportunity has come now; the opportunity cannot be better than now.’’

He said under the Survival Fund, the last strap would be the Transport and Artisans Support. According to him, no fewer than 333,000 beneficiaries will get a one-off N30,000 grant, adding that the government will be working with associations, individuals and the Ministry of Transportation to implement the scheme.

“After that, we move to the Guaranteed Off-take.We will be rolling out the schemes weekly; we plan to, for four weeks in a row, if we can and God permits put a smile in the face of MSMEs across all board. That is our plan; if things change, we will let you know.”

“We are working with states because we do not want to get to a stage where the states will say how come 35,000 people are benefitting from our state and we do not know.


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FLASH: We Generate ₦3bn From Stamp Duty Weekly – FIRS



The Federal Inland Revenue Service (FIRS) says it generates N3 billion revenue weekly from stamp duty collection.

This stamp duty revenue is generated weekly from May 2020 to date from Deposit Money Banks (DMBs).

Executive Chairman of the FIRS, Muhammad Nami told the House of Representatives Committee on finance on Tuesday in Abuja.

The purpose of the meeting with the legislators was to resolve the face-off between the FIRS and the Nigeria Postal Service (NIPOST) over stamp duty collection, and the fate of the N58 billion revenue generated from February 2016 to April, 2020.

The Session which was chaired by the Chairman Finance Committee of the House of Representatives, Hon. James Abiodun Faleke include other members of the committee, Post- Master General of the Federation Dr. Ismail Adebanjo Adewusi, NIPOST board Chairman Barr. Maimuna Yaya Abubarkar and other top officials of the postal agency and FIRS officials.

Nami said the FIRS was able to generate this much revenue from a single stream of stamp duty collection from DMBs because the Service had deployed a new technology to track and capture such revenue straight into the federation account.

The technology deployed by the FIRS Nami said is the Application Programming Interface (API) technology solution, an – online real time technology that makes collection of Stamp Duties easier.

Nami said when he assumed office in December 2019, the FIRS discovered over N30 billion in the NIPOST Stamp duty Account with the Central Bank of Nigeria (CBN). The account was opened in 2016 specifically to warehouse revenue from stamp duty collection.

However, by April 2020, the balance in the account had grown to N58 billion because of the deployment of the API by the FIRS. Money in the stamp duty account by May 2020 was transferred to the federation account following instructions given to the CBN by the FIRS to do so.

Since then, both the FIRS and the NIPOST have been at daggers drawn over who controls stamp duty collection and invariably the money which accrues from the collection.

Nami said payment of Stamp Duties collection in Nigeria dates back 94 years ago, stressing that stamp duty had always been part of the revenue schedule of tax authority.

He regretted that the differences in who controls stamp duty collection between both NIPOST and FIRS had degenerated a public spat to between the two agencies describing the development as “unnecessary and unhelpful”.

According to him, “the FIRS regrets that as agency of the government, FIRS and NIPOST allow a simple situation to degenerate to media exposure”.


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Kwara Ranked 4th Economic Viable State Behind Lagos, Ogun, Rivers



-Tops Kaduna, Enugu in Annual States Viability Index


The Economic Confidential has released the Annual States Viability Index ( ASVI) which shows that seven (7) States are insolvent as their Internally Generated Revenues (IGR) in 2019 were far below 10% of their receipts from the Federation Account Allocations (FAA) in the same year.

The index carefully and painstakingly computed proved that without the monthly disbursement from the Federation Account Allocation Committee (FAAC), many states remain unviable, and cannot survive without the federally collected revenue, mostly from the oil sector.

The IGR are generated by states through Pay-As-You-Earn Tax (PAYE), Direct Assessment, Road Taxes and revenues from Ministries, Departments and Agencies (MDA)s.

The IGR of the 36 states of the federation totalled N1.3 trillion in 2019 as compared to N1.1 trillion in 2018, an increase of about N200 billion. The report by the Economic Confidential, an intelligence magazine further indicates that the IGR of Lagos State of N398bn is higher than that of 20 other States put together whose Internally Generated Revenues are extremely low, and poor compared to their allocations from the Federation Account.

Meanwhile, the Federal Capital Territory (FCT) Abuja which is not a state but the nation’s capital generated N74bn IGR against N30bn from the Federation Account in the same period.

Lagos State remained steadfast in its number one position in IGR with a total revenue generation of N398bn compared to FAA of N270bn which translate to 147% in the twelve months of 2019. It is followed by Ogun State which generated IGR of N70.92bn compared to FAA of N92bn representing 77%; Rivers with N140bn compared to FAA of N219bn representing 64% and Kwara State with a low receipt from the Federation Account has maintained its impressive IGR by generating N30bn compared to FAA of N80bn representing 38%.

Others with impressive IGR include Kaduna with IGR of N44bn compared to FAA of N129bn representing 35%; Enugu generated N31bn compared to FAA of N103bn representing 29%; Ondo with IGR of N30bn compared to FAA of N103bn representing 29%; Edo with IGR of N29bn compared to FAA of N108bn representing 27%; Anambra with IGR of N26bn compared to FAA of N98bn representing 27% while Cross River State earned N22bn IGR against FAA of N99bn representing 25%.

The ten states with impressive IGR generated N894bn in total, while the remaining 26 states merely generated a total of N440bn in 2019.

The report provides an amazing discovery, as most states have improved their IGR compared to previous years. In 2019 only seven states generated less than 10% IGR compared to 17 states in 2018.

There are seven states that may not survive without the Federation Account due to their extremely poor internal revenue generation of less than 10% compared to their federal allocations. Top on the
Katsina, the home state of President Muhammadu Buhari generated the poorest and lowest IGR compared to its federal allocation in 2019. It realized a meagre N8bn compared to a total of N136bn ‘free money’ received from the Federation Account Allocation (FAA) in 2019 representing 6%. It is followed by Kebbi with IGR of N7.3bn compared to FAA of N100bn representing 7%; Borno N8bn compared to FAA of N121bn representing 7% and Taraba with IGR of N6.5bn compared to N86bn of FAA representing 8%.

Others include Bayelsa, the home state of former President Goodluck Jonathan with IGR of N16bn compared to N176bn of FAA representing 9%; Yobe with IGR of N8.4bn compared to N88bn of FAA representing 9% and Gombe with IGR of N6.8bn compared to N75bn of FAA representing 75% within the period under review.

The poor states with lower IGR may not stay afloat outside the monthly allocations from Federation Account due to lack of initiatives for revenue generation drive coupled with arm-chair governance. Some of the states cannot attract investors due to socio-political and economic crises including insurgency, kidnapping, armed-banditry and herdsmen-farmers clashes.

The Economic Confidential ASVI further showed that only three states in the entire Northern region have IGR above 20% in comparison to their respective allocations from the Federation Account. They are Kwara, Kaduna and Kano States in that order.

Meanwhile, ten states in the South recorded over 20% IGR in 2019. They are Lagos, Ogun, Rivers, Enugu, Ondo, Edo, Delta, Anambra, Cross River and Delta States.
Only Bayelsa is a state with the poorest Internally Generated Revenue of less than 10% compared to their FAA in the South in 2019. The other poorest IGR states are in North-East Yobe, Gombe, Borno and Taraba State and two states from North-West, namely Katsina and Kebbi.

Meanwhile, the IGR of the respective states can improve through aggressive diversification of the economy to productive sectors rather than relying on the monthly Federation Account revenues that largely come from the oil sector.



Source: Economic Confidential

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