CBN: N2.10tn disbursed to 426 projects under real Sector facility
The Central Bank of Nigeria (CBN), yesterday disclosed that cumulative disbursements under the Real Sector Support Facility (RSSF) currently stands at N2.10 trillion disbursed to 426 projects across the country.
The facility was established as part of efforts by the apex bank to stimulate output growth, enhance value addition and engender productivity in the economy, and is channelled towards increasing credit to priority sectors of the economy with sufficient employment capabilities, high growth potential, increase accretion to foreign reserves, expand the industrial base andconsequently, diversify the economy.
The central bank added that it had released the sum of N66.99 billion to 12 additional projects in manufacturing and agriculture under the facility.This was disclosed by the CBN Director, Corporate Communications Department, Mr. Osita Nwanisobi, who also said the bank was seriously committed to export-ready businesses, thereby encouraging businesses to embrace the bank’s concept of Produce, Add Value and Export (PAVE).
Speaking at the CBN Special Day at the ongoing 17th International Trade Fair, themed: “Creating an Export Ready Market through SME Digitalization”, which was organised by the Abuja Chamber of Commerce and Industry (ACCI), Nwanisobi, also stated that the central bank also recently disbursed N20.17 billion to 14 projects in healthcare, manufacturing, and services, bringing the cumulative disbursement under the 100 for 100 Policy on Production and Productivity (PPP) to N93.39 billion to 62 projects.
Represented at the exhibition by the CBN acting Director, Corporate Communications Department, Mr. Sam Okogbue, he said, the PAVE concept aims to make Nigerians consume what they produce, add value to such products and export the surpluses.Nwanisobi said, “It is an initiative similar to the export-led industrialisation policy of South-East Asia, which changed the economic fortunes of countries such as South Korea, Taiwan, Malaysia and Singapore. PAVE, which is designed to be the key for fast-tracking a bucket of substitutes to crude oil export, encourages backward integration for the local production of items in which we have a comparative advantage.
“If it worked for the South-east Asians, it surely can work for us in Nigeria. I, therefore, urge SMEs to ensure that their products and services are export-ready and can compete globally.”He also said the CBN had supported entrepreneurship development in the Micro, Small and Medium Enterprises (MSME) sector, by committing the sum N39.26 million under the Tertiary Institutions Entrepreneurship Scheme (TIES), bringing the total disbursement under the intervention to N332.43 million.
According to him, despite the global economic challenges, the central bank under the leadership of Mr. Godwin Emefiele, would continue to ensure that the bank delivers on its core mandate of ensuring monetary and price stability and that CBN remains a people-focused central bank.He, therefore, solicited the support and cooperation of all stakeholders towards returning the country to the path of greatness through SMEs, which remained the real engine of growth in any economy.
The CBN director also said as the world gradually inches towards a digitalised global economy, the apex bank had kept pace with the emerging trends with the launch of the Central Bank Digital Currency (CBDC) also known as the eNaira, which he said was the first of its kind in Africa.He said the move was in consonance with the bank’s resolve of continuous modernisation of the country’s payments system in view of the increasing sophistication of fintech solutions that offer new capabilities to users.He stressed that the eNaira aims to support Nigeria’s stable and resilient payment system; enhance financial inclusion, especially for SME operators, and reduce the cost of processing money amongst other benefits.
According to him, the eNaira was also designed as an efficient payment instrument, to support the delivery of the targeted government’s social investment scheme, and promote regional trade and international remittances thereby enhancing foreign exchange stability.He said, “I, therefore, encourage you to not only onboard on the eNaira platform but to transact with the eNaira. In ending my remarks, I wish to reiterate the bank’s request to all of you to see the Naira as one of Nigeria’s critical assets; respect and keep it clean.
“Do not spray, mutilate, hawk or counterfeit the Naira. On our part, we shall continue to ensure that we make clean notes available for you.”However, the President of ACCI, Dr. Al-Mujtaba Abubakar, commended the CBN for its intervention programmes which he said, helped to liberate the economy in turbulent times.
Represented by the Vice-President of ACCI, Alhaji Usman Balarabe, he said, “We have a deeper appreciation of the critical importance of the central bank to the overall growth and development of the economy. More importantly, we understand the dimension and the depth of issues involved in being a Central banker in times of national economic emergency.”
CBN, GIZ Engage MSMEs , Artisans on Access to Loan
Meanwhile, a German International Agency for Development (GIZ) in collaboration with the CBN, the National Collateral Registry (NCR), yesterday advised owners of MSMEs, to approach banks for credit facilities in order to expand their business.The organisations, gave the advice in Abeokuta, Ogun State, at a roundtable meeting with MSMEs, artisans and farmers, on how they could access loans from financial institutions using their movable assets as collateral.
Addressing participants in Abeokuta, the GIZ Officer, Mr. Afolabi Olawale, said Ogun State was chosen among the focal states to benefit from the organisation, which has its presence in over 170 countries of the world and collaborating in different sectors of the economy development.Olawale, said the GIZ and the CBN’s NCR, were at the meeting to consolidate on previous online discussions that they had with them on how to raise money to expand their respective businesses.
He said “Some of us here do not believed in taking loan for our businesses because of our nature and our experiences about borrowing money from banks and what they normally required.
“We are here today to break down barriers between financial institutions and MSMEs on access to credit facilities to expand your businesses.“The NCR has created a particular infrastructure that can help you to get loan using your movable assets like your machines, cars and others, as collateral facilities.”
Speaking at the event, an officer of the CBN, Mr Kazeem Owoade, said the regulator had identified some of the challenges facing MSMEs in getting finances for their Enterprise
