CBN, banks to disburse N60bn to support FG devt initiate ―Emefiele

GOVERNOR, Central Bank of Nigeria (CBN), Mr Godwin Emefiele says an initiative by the apex bank and deposit money banks to contribute five percent of their profit after tax as a contribution to development initiatives of Federal Government will soon hit the N60 billion mark.

And according to him, CBN and deposit money banks have concluded plans to unfold the disbursement criteria of the funds to the vulnerable sector in Nigeria, which he said needed access to credit.

In an acceptance speech on Saturday when he received the Man of the Year award bestowed on him by The Guardian newspaper, Emefiele noted that the exposure of the Nigerian economy to global shocks was a reflection of the fact that Nigeria, as a country, was unable to sufficiently produce what its people consume; hence the huge dependence on foreign goods.

He attributed the inability of the country to sufficiently produce what it consumes to heavy dependence on oil sector to provide the foreign exchange needed to finance the country’s imports and the poor diversification of the economy and low factor productivity in the key non-oil sector.

He also identified the ostentatious and elitist taste for imported goods in Nigeria and the inadequate finance to strategic high impact and high employment multiplier sectors as major challenges facing the economy.

While noting that the level of credit in the domestic economy channelled to productive private sector was critically below the levels required to place the Nigerian economy on the path of balanced, sustainable, and inclusive growths, Mr Emefiele, however, assured that the CBN and the banks in Nigeria would continue to be catalysts for development in Nigeria, particularly as it concerned the vulnerable and needy in the society.

On the efforts by the Bank in countering the adverse effects of the global shocks, he said the CBN embarked on a number of short-term and long-term policies such as a cycle of monetary tightening to rein in inflation; external reserves management through the restriction of foreign exchange for imports of goods that can be produced in Nigeria.

He said the Bank also established a decisive withdrawal of the “de facto” subsidy for the importation of 41 non-essential commodities with unfolding successes, introduced various policies to eliminate FX speculators, bettors, round-trippers and rent-seekers and thereby stabilise the exchange rate with the establishment of the Investors-Exporters Window among others.

Reeling out the achievements of the Bank, Mr. Emefiele said the sum of ₦393.5 billion had been released to 478 large-scale agricultural projects since inception in 2010, even as the Bank was poised to disburse up to ₦400 billion at only 9.0 percent interest rate under the Real Sector Support Facility (RSSF), adding that the strategic initiative was targeted at projects in manufacturing and agriculture, given the mutual interdependence of both sectors for the complete industrialization of agro-allied business.

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He also disclosed that under the Nigeria Incentive-based Risk Sharing System for Agricultural Lending (NIRSAL), established in 2011, more than 224 projects valued at over ₦33.0 billion were guaranteed for the Federal Ministry of Agriculture’s Growth Enhancement Scheme.

On Saturday, April 7, 2018, unveiled as The Guardian Economic Personality of the Year 2017 in recognition of his contribution to stabilising the Nigerian financial sector amidst recession as well as the Bank’s effort in development financing.

Presenting the award to Mr. Emefiele at a ceremony held at the prestigious Eko Hotels and Suites, Victoria Island, Lagos, the President and Chairman of Council, Chartered Institute of Bankers of Nigeria (CIBN), Professor Segun Ajibola, commended Mr. Emefiele and his team at the CBN for their efforts at managing the Nigerian financial sector and intervening in critical sectors of the economy, particularly agriculture.

Meanwhile, following the assumption of the duty of the two new Deputy Governors of the Central Bank of Nigeria (CBN) on March 28, 2018, the Governor, Mr Godwin Emefiele has approved the redeployment of Dr Okwu Joseph Nnanna, from the Financial System Stability (FSS) Directorate to the Economic Policy Directorate.

A statement by the Acting Director, Corporate Communications Department of the CBN, Isaac Okorafor, also disclosed that the Governor equally approved the deployment of Mrs Aishah Ahmad to the Financial System Stability (FSS) Directorate, while Mr Edward Lemetek Adamu has been assigned the portfolio of Deputy Governor, Corporate Services.

Mr Adebayo Adelabu, however, retains his portfolio as Deputy Governor, Operations Directorate.

The statement said all the affected principal officers have since assumed duty in their new offices.