Economy | Monetary Policy

CBN Sustains Credit Interventions in Different Sectors of Nigerian Economy

Aug 01, 2022   •   by   •   Source: FBNQuest   •   eye-icon 137 views

At the just concluded MPC meeting, the CBN governor detailed the bank’s interventions aimed at stimulating productivity within different sectors of the Nigerian economy. Within a month (May-June), the bank disbursed about NGN221.2bn under various intervention initiatives cutting across sectors.  Isolating the NGN10bn (c.5% of total allocations in the period) disbursed under the 100 for 100 initiative (across agriculture, healthcare, and service without details of sector specific disbursements), 54% of disbursements were made to the manufacturing/industries sector, 24% to power-related projects, 21% to agriculture, and 2% to healthcare. Overall, cumulative disbursements across all facilities since inception amount to NGN4.4trn with the highest allocations seen under the real sector facility (NGN2.2trn) and the anchor borrower’s programme (NGN1.0trn).  

Between May and June, the bank distributed NGN3.6 bn to 12 projects for the cultivation of rice, wheat, and maize under the Anchor Borrower's Programme. So far, the facility has disbursed NGN1.0trn to over 4.2 million farmers cultivating about 21 commodities across the country 

Under the Commercial Agriculture Credit Scheme (CACS), the bank disbursed NGN3.7bn towards 3 large scale agric projects. This brings total disbursement to NGN744.3bn towards 678 projects in agro-production and agro-processing. 

Also, the CBN under the Real Sector Facility funded 19 new projects (greenfield and brownfield) in the manufacturing sector. So far, a total of 414 real sector projects have been funded under the facility 

Five projects received NGN10.0bn through the 100 for 100 Policy on Production and Productivity. Since its inception, NGN68.1bn has been disbursed, with the funds split between projects in the manufacturing (26), agricultural (17), healthcare (3), and services (2) sectors. 

During the period, the bank also disbursed NGN4.4bn to 3 healthcare projects under the Healthcare Sector Intervention Facility (HSIF) 

A total of NGN36bn was released under the Export Facilitation Initiative for agriculturally related projects. Additionally, NGN2.5bn and NGN47.8bn were released, respectively, for the National Mass Metering Programme (NMMP) and the Nigeria Electricity Market Stabilisation Facility- Phase 2 (NEMSF-2). 

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