CBN develops advanced system to ease agric value chain

The Central Bank of Nigeria (CBN) has developed an advanced system to ease the agriculture value chain by linking farmers to input suppliers as well as providing access to the market for farm products.

Also, the CBN said its cumulative disbursement to key sectors of the economy through the development finance department in three years has gulped N9.714 trillion.

Of the amount disbursed, the manufacturing/industry sector got the highest allocation of 32.6 percent; agriculture had 22.8 percent; energy/ infrastructure 23.1 percent; health got 1.4 percent; export 2.4 percent, MSME’s 7.1 percent and services sector 10.4 percent.

Director, Development Finance Department Mr. Philip Yila Yusuf who disclosed this on Monday at DFD’ 2022 retreat themed: “financing for sustainable development in Nigeria”, stated that the entire agricultural value chain had seen transformation not witnessed before.

Yila was confident that the global headwinds that distorted outcomes for most economies across the world will abate.

He said, “Nigeria is on the path of sustainability and food security. The Development Finance Department of the Central Bank of Nigeria is committed to the goal of sustainable economic growth. While we are committed to making today a comfortable day to live in. We are also mindful of sustainable development which is defined as the development which meets the needs of today without compromising the ability of future generations to meet their own needs”, adding that the intervention programme of CBN led to empowering various Nigeria at the various times.

According to him, “We have traversed the length and breadth of this country empowering farmers through our Anchor Borrowers Programme. We have empowered commercial farmers through our Agricultural Credit Guarantee Scheme Funds, enabled SMEs by extending access to finance using the Agribusiness Small and Medium Enterprises Investment Scheme (AGSMEIS).

“Moreso, the Targeted Credit Facility (TCF) was a very potent tool in mitigating the impact of COVID during the protracted lockdown period.

“The TCF became the bedrock of comfort for many households during COVID and Nigerians would surely remember that. And certainly, our tertiary education students and graduates are not left out in the cold. We initiated the Tertiary Institutions Entrepreneurship Scheme (TIES) and have seen smiles on the faces of erstwhile helpless students and graduates who otherwise would have basically joined the labour pool with no hope of meaningful employment years after graduation.

“With TIES we have confronted this big unemployment problem, and all a student or graduate requires is to have an idea, apply for TIES and then watch that idea grow and take wings. With our Micro, Small and Medium Enterprises Development Fund (MSMEDF) we have catalyzed access to finance for the most excluded business segments of our economic space. Women are prioritized in the MSMEDF with a dedicated percentage of funds earmarked to enable us close the gender gap in financing.

“Our financial inclusion drive has been very resonant and consistent over the years, to enable access to finance for all Nigerians and we have even renewed our target to 95% by 2024. We continue to build the case for the use of movable assets as collateral for individuals and small businesses to unfreeze and unlock finances to enable Nigerians make a decent living. Time would fail me to talk about our interventions in the power sector to ensure Nigerians have electricity, and also in the airlines segment, providing a buffer to ensure air travel continues seamlessly in Nigeria”.

In her remark, Deputy Governor, Financial System Stability Mrs. Aisha Ndanusa Ahmad said the bank over the years had gone outside its core mandate of price stability to ensure economy stability.

She reminded beneficiaries of loan interventions that the loans must be paid back saying they are not grants but repayable loans.

In a good will message, Jigawa state Governor Alhaji Muhammad Badaru Abubakar, said different interventions by the CBN impacted Jigawa positively.

He said, “For instance, before these interventions in the agric value chain, we could only produce about 192, 800 metric tons of rice but with the various interventions in the last 5 years, we now do up to 1.9 million metric tonnes with thousands of moribund rice mills now revived. The development has moved our GDP from. N1 trillion in 2015 to N2.5 trillion in 2021”.

In another good will message, Kebbi State Governor Abubakar Atiku Bagudu said the CBN spearheaded campaign against rice importation, a decision he noted changed Nigeria rice production narrative for better.

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