99% of CBN’s N200 billion Manufacturers’ Intervention Fund Disbursed

Risk Management Division, Bank of Industry, Mr. Kola Adewole has disclosed that over 99% of the N 200 billion intervention fund set aside for manufacturers in the country had been disbursed.

The CBN set aside the money in 2010 in order to in order to achieve quantitative easing as well as to provide liquidity and cheap financing to the manufacturing sector, especially at a time when bank credit was not forthcoming due to the restructuring exercise.

Adewole said, ““The objectives of the fund include fast-tracking the development of the manufacturing sector of the Nigerian economy by improving access to credit to manufacturers; improving the financial position of the Deposit Money Banks; increasing output; generating employment; diversifying the revenue base, as well as increasing foreign exchange earnings. It is also meant to provide inputs for the industrial sector on a sustainable basis.”

Akintunde Sowunmi, CBN’s Deputy Director of Development Finance disclosed this to the media recently, stating that the apex bank expected the banks to play their role in ensuring the funds were utilized judiciously.

“We expect the banks on their parts to play their roles. Due diligence is expected from them. All these are being done in order transform the industrial sector. Most especially the manufacturing sector,” he said.

He also disclosed that the CBN has enlisted the Africa Finance Corporation (AFC) to ensure effective implementation of the projects the CBN invested in.