The Central Bank of Nigeria (CBN), has through eight of its various interventions, disbursed N814.945 billion in its efforts to steer the economy of the country back to the path of growth as at February 2016.
According to data from the apex bank, the fund was disbursed through the Agricultural Credit Guarantee Scheme Fund (ACGSF), Commercial Agriculture Credit Scheme (CACS), Real Sector Support Facility (RSSF), Small and Medium Enterprises Credit Guarantee Scheme (SMECGS), Power and Aviation Intervention Fund (PAIF), Micro, Small and Medium Enterprises Development Fund (MSMEDF), Nigeria Electricity Market Stabilisation Facility (NEMSF) and the Anchor Borrowers Programme (APB).
Under the CACS, launched in 2009 with a seed fund of N200 billion with focus on the financing of large ticket projects along the agricultural value chain, the apex bank had disbursed N337.635 billion that was used to finance 432 projects.
The scheme is administered at 9 per cent rate of interest to beneficiaries for a seven year period, beginning from 2009. Eligible large scale farmers and state governments, including the FCT, have continued to access the scheme and so far, the CACS has created 1.132 million jobs and an interest savings of N42.56 billion in savings as N137.8 billion has been repaid.
The ACGS which was launched in 1978 has also disbursed N97.014 billion. The scheme which has a seed fund of N3 billion has led to the creation 5.045 million jobs through 1.009 million loans that has been given, out of which N67.014 billon has been repaid. The ACGS is a special purpose vehicle to encourage lending to the agriculture sector by providing guarantee to banks.
Specifically, it guarantees credit facilities extended to farmers by banks up to 75 per cent of the amount in default net of any security realised. Complementary to the scheme, the CBN said it will continue the operation of the Interest Drawback Programme (IDP) in the payment of interest rebate of 40 per cent to farmers that make timely repayment. The SMEGS likewise was launched in 2010 with a seed fund of N300 billion to promote access to credit by SMEs. The objectives of the scheme include fast-tracking the development of the manufacturing SME sector of the Nigerian economy by providing guarantee for credit from banks to SMEs and manufacturers.
It was also meant to set the pace for the industrialisation of the Nigerian economy and increase access to credit by promoters of SMEs and manufacturers. It was also meant to increase output, generate employment, diversify the revenue base as well as increase foreign exchange earnings and provide inputs for the industrial sector on a sustainable basis. The scheme has in its six years disbursed N4.219 billion that has gone into financing 87 projects.
For more, visit Leadership News.