CBN’s assistance to the private sector costs N4.4 trillion.
As of July 2022, the Central Bank of Nigeria (CBN) had given the private sector of the Nigerian economy about N4.4 trillion in intervention money.
The apex 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 total disbursements to the healthcare sector, the power industry, and metering.
For example, through the ABP, the CBN gave N1.01 trillion to nearly 4.21 million smallholder farmers who grew 21 crops all over the country.
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This happened after the central bank said that its flagship Anchor Borrowers’ Programme (ABP) has made Nigeria less reliant on rice imports, and the country is now an exporter of rice.
Also, the CBN has given out a total of N744.32 billion under the Commercial Agriculture Credit Scheme for 678 projects in agro-production and agro-processing. At the moment, N2.183 trillion has been given out under the Real Sector Facility for Manufacturers to finance 414 real sector projects across the country.
Furthermore, funds from the COVID-19 Intervention for the Manufacturing Sector (CIMS) and the Real Sector Support Facility from Differentiated Cash Reserve Requirement were used for both greenfield and brownfield projects (RSSF-DCRR). Under its 100-for-100 Policy on Production and Productivity, the apex bank has given out N68.13 billion to people since the intervention began.
The intervention has led to 26 disbursements in manufacturing, 17 in agriculture, 3 in health care, and 2 in the services sector, according to the bank.
The total amount disbursed under the NEMSF-2 is now N254.46 billion.
Under the Nigeria Electricity Market Stabilisation Facility Phase 2, funds were allocated to distribution companies (DisCos) for operational expenditure (OPEX) and capital expenditure (CAPEX) (NEMSF-2).
Under the National Mass Metering Programme (NMMP), another N47.82 billion was spent to buy and install 865,956 meters all over the country.
The CBN has already stressed the necessity of collaboration between fiscal and monetary authorities.
The CBN Governor, Godwin Emefiele, stated recently in Lagos at a seminar for finance correspondents and business editors titled “Policy Options for Economic Diversification:
Thinking Outside the Crude Oil Box” that with Nigeria’s population growing by more than 3% per year over the last seven years and the country’s quest to build a more sophisticated economy, the production and industrial capacity of the economy must be given special attention.
For example, the total amount paid out for 129 projects, such as 76 hospitals, 32 pharmaceuticals, and 21 other healthcare services, was N133.42 billion.
“Over the past four decades, Nigeria has relied heavily on the oil sector for revenue generation, and the prolonged drop in crude oil production has harmed the economy’s performance.” Because of this, there is an urgent need to try to get into businesses that don’t involve oil.
“With our population growing at a rate of more than 3% per year over the last seven years and output growing at a slower rate since 2019, expanding the economy’s production and industrial capacity needs special attention to preserve general macroeconomic stability,” he said.