Regulatory Alerts2010-05-21 | FPR/DIR/CIR/AML/CFT/01/001Circular to Banks and Other Financial Institutions: Revised CBN Anti-Money Laundering/Counter Terrorism Financing (AML/CFT) Regulation, 2009
The Nigerian Central Bank has established a special intervention fund to support manufacturing businesses negatively affected by the global financial crisis and poor power supply in Nigeria. This Manufacturers' Investment Finance Fund (MIF) is designed to assist manufacturers with working capital, equipment purchases, and other investments that can boost production capacity and output. The fund offers loans at 7% per annum through participating banks, which will be managed by the Bank of Industry (BOI). The loan term is up to 5 years for working capital and 7-10 years for investments in plant and equipment. Borrowers must meet certain conditions such as being registered with relevant government agencies, having a viable business plan, and maintaining an acceptable level of insurance coverage. The fund will also offer benefits such as exemption from NDIC premium charges, continued liquidity asset status for pledged securities, and potential tax incentives based on the Industrial Development Income Tax Relief Act. The Central Bank of Nigeria (CBN) will monitor and verify projects under the fund and provide periodic reports on its performance. To ensure efficient utilization and repayment, the participating banks must collaborate with organized private sector associations like Manufacturers Association of Nigeria (MAN) and National Association of Small and Medium Enterprises (NASME). The borrowers are also required to adhere strictly to the terms and conditions of the fund and make their projects available for inspection/verification by relevant authorities.