By Chinwendu Obienyi
The Central Bank of Nigeria(CBN), has disbursed cumulatively over N4.4 trillion in intervention funding to the private sector of the Nigerian economy as at July 2022.
According to data compiled by Daily Sun from official statements contained in the monetary policy communique of the apex bank, the bank disbursed a total of N4.4 trillion on the Anchor Borrowers’ Programme (ABP), Commercial Agriculture Credit Scheme (CACs), Real Sector Support Fund, Greenfield and Brownfield projects and 100 for 100 policy initiative.
Others include, cumulative disbursements to Healthcare sector, Power sector and Metering.
For instance, CBN under the ABP disbursed a total of N1.01 trillion to over 4.21 million smallholder farmers cultivating 21 commodities across the country.
This was even as the apex bank revealed that its flagship Anchor Borrowers’ Programme (ABP) has changed Nigeria’s long-standing dependence on imported rice with the country now a rice exporting country.
Also, under the Commercial Agriculture Credit Scheme, the CBN has disbursed a cumulative of N744.32 billion for 678 projects in agro-production and agro-processing while cumulative disbursements under the Real Sector Facility for Manufacturers currently stands at N2.183 trillion for the financing of 414 real sector projects across the country.
Furthermore, the funds were utilised for both greenfield and brownfield projects under the COVID-19 Intervention for the Manufacturing Sector (CIMS) and the Real Sector Support Facility from Differentiated Cash Reserve Requirement (RSSF-DCRR). The apex bank also disclosed that it has disbursed N68.13 billion to beneficiaries under its 100-for-100 Policy on Production and Productivity since the commencement of the intervention.
According to the bank, the cumulative disbursements under the intervention are 26 in manufacturing, 17 in agriculture, three in healthcare and two in the services sector.
For instance, cumulative disbursements stood at N133.42 billion for 129 projects, comprising 76 hospitals, 32 pharmaceuticals, and 21 other healthcare services.
Cumulative disbursement under the NEMSF-2 currently stands at N254.46 billion. The money for the power sector was given to Distribution Companies (DisCos) for their Operational Expenditure (OPEX) and Capital Expenditure (CAPEX), under the Nigeria Electricity Market Stabilisation Facility – Phase 2 (NEMSF-2)
Also, a further N47.82 billion was disbursed under the National Mass Metering Programme (NMMP), for the procurement and installation of 865,956 meters across the country.
It will be recalled that the CBN had reiterated the importance of collaboration between the fiscal and monetary authorities.
The CBN Governor, Godwin Emefiele during a seminar for Finance Correspondents and Business Editors with the theme: “Policy Options for Economic Diversification: Thinking Outside the Crude Oil-Box” which held in Lagos recently, noted that with Nigeria’s population growing by over 3 per cent per annum over the past seven years and its quest to build a more sophisticated economy, the production and industrial capacity of the economy must be given special attention.
“Nigeria has largely depended on the oil sector for revenue generation over the past four decades and the sustained decline in crude oil production has continued to negatively undermine the performance of the economy. Thus, there is the urgent need for a conscientious effort to diversify to other non-oil sectors.
With our population growing by over 3 percent per annum over the past seven years, against a less than steady growth in output since 2019, expanding the production and industrial capacity of the economy must be given special attention to ensure overall macroeconomic stability,” he said.