CBN to Enhance Credit Facility with Technology

• CBN Plans to Enhance Credit Facility with Technology

The Central Bank of Nigeria disclosed plans to enhance local credit facility with Technology.

“The bank will explore the possibility of leveraging technology to enhance credit to critical sectors of the economy, especially, agriculture and manufacturing,” it stated.

The central bank, which recently announced a policy to refund a certain portion of CRR to lenders financing new projects or expanding existing ones, said funding of the agriculture and manufacturing sectors would be intensified and improved going forward.

“This, we believe, will bolster job creation while supporting our agenda to correct Nigeria’s imbalances and vulnerabilities,” it stated.

However, the apex bank said monetary policy rate would remain unchanged at 14 per cent due to rising inflation number and forex pressures.

It stated, “The current tight stance is expected to continue in the near-term, especially in view of rising inflation expectations and exchange market pressures.

“Though we will act to appropriately adjust the policy rate in line with unfolding conditions and outlooks, the CBN will continue to ensure that the policy interest rate is delicately set to balance the objectives of price stability with output stabilisation.”

The CBN governor, Godwin Emefiele said, “If we continue to support the growth of smallholder farmers, as well as help to revive palm oil refineries, rice mills, cassava and tomato processing factories, you can only imagine the amount of wealth and jobs that will be created in the country.”

“These could include new set of smallholder farmers that will be engaged in productive activities; new logistics companies that will transport raw materials to factories, and finished goods to the market; new storage centres that will be built to store locally produced goods; additional growth for our banks and financial institutions as they will be able to provide financial services to support these new businesses; and finally, the millions of Nigerians that will be employed in factories to support processing of goods.”