CBN Assigned Over N1trn To Fund Real Sector
The Central Bank of Nigeria (CBN), has set aside over N1 trillion to promote lending to the real sector of the economy with a view to stimulating economic activities in the country. The Governor of the CBN, Mr. Godwin Emefiele, disclosed this at the 21st Seminar for Finance Correspondents and Business Editors in Ibadan, Oyo State capital, yesterday.
Mr. Emefiele who spoke through the Deputy Governor, Corporate Services, Mr. Adebayo Adelabu, justified the massive interventions of the apex bank in financing the real sector of the economy, saying that the current trend in global central banking has gone beyond the core functions of monetary policy management.
His said, “At the CBN, our approach to real sector development is three-pronged. Our interventions centre around agriculture, Micro, Small and Medium Enterprises, MSMEs and Infrastructure interventions.
“The interventions included the N300 billion Real Sector Support Facility RSSF; the N220 billion Micro, Small and Medium Enterprises Development Fund, MSMEDF; the N213 billion Nigeria Electricity Market Stabilisation Fund; N500 billion Non-Oil Export Stimulation Facility; and the N75 billion Nigeria Incentive Based Risk Sharing for Agricultural Lending, NIRSAL.”
According to him, the principle behind the various interventions were to provide operators in the real sector single-interests loans of between 6-9 per cent at longer tenors, with alternative collaterals, which were the major hindrances to Deposit Money Banks’ lending to the sectors.
He cited the policy of the Ghanaian government in which it was legislated that all members of the public both in government employment and those employed in the private sector must wear locally made “Ankara”, “Kente” or “Tulip” , at least two days in a week.
According to him, that policy played a major role in revamping the Ghanaian textile industry, so much that that country’s textile industry now imports large volume of its products to Nigeria and other markets in the region.