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CBN’s real sector financing rises to N1.4trn

By on February 10, 2016

The Central Bank of Nigeria (CBN) has put the value of its development finance interventions across the country at about N1.36 trillion.
CBN Governor, Mr. Godwin Emefiele, who disclosed this yesterday emphasised that the central bank’s determination to improve lending to the real sector of the economy would stimulate employment generation and boost accretion to foreign reserves through non-oil exports.

A breakdown of  the disbursements showed N300 billion had been set aside for Real Sector Support Facility (RSSF); N220 billion had also been disbursed for the Micro-Small and Medium Enterprises Development Fund (MSMEDF); the  Nigeria Incentive Based Risk Sharing System for Agricultural Lending (NIRSAL) got N75 billion; and the Nigeria Electricity Market Stabilization Fund received N213 billion.

Similarly, the Nigeria Export-Import Bank (NEXIM) support at N50 billion for the Export Refinancing and Restructuring Facility; and the Non-oil Export Stimulation Facility that received N500 billion.

Speaking at the opening of the ongoing 21st seminar for finance correspondents and business editors, themed: “CBN Real Sector Fnancng: A catalyst for Economic Growth and Development,” in Ibadan, Oyo State, he said the move became necessary given that the real sector represented the “engine of every economy” and serving as source for wealth creation and income generation to the productive population.

The CBN governor further noted that though the real sector, which consisted of the agricultural, industrial, building and constructive sub-sectors accounted for 93.67 percent of the country’s Gross Domestic Product (GDP) in 2000, its contribution had since declined to 76.21 percent and 70.71 percent in 2010 and 2013, respectively.

Represented by the CBN Deputy Governor, Corporate Services, Mr. Adebayo Adelabu, he, however, said concerted efforts were ongoing to deepen credit delivery to the real sector through several interventions and schemes.

He added: “The far reaching objectives of the CBN in the implementation of schemes and programmes for real sector development focus on the inherent potential in the sector is-a-vis our conviction that the sector has sufficient employment capabilities, high growth potentials, contributes significantly in accretion to foreign reserves, expands the industrial base and apparently diversifies the growth potentials of the national economy.”

He said the recent exclusion of 41 items from accessing forex from the CBN official window and stoppage of sale of forex to bureaux de change (BDC) operators were part of bold policy initiatives by the bank to resuscitate domestic industries and improve employment generation.

Adelabu said in his speech earlier that the seminar was to let participants into the core principles behind the actions of the CBN to act as financial catalyst in targeted sectors of the economy with humongous potential for creating jobs, reducing the country’s import bills in a very significant manner. He also expressed optimism that the forum would serve as an ideal platform to stimulate and reinforce national discussions on all issues.

 

[ThisDay]