Finance
CBN Disbursed Over N4.4 trillion As Intervention Fund To The Private Sector
The Central Bank of Nigeria (CBN) has disbursed cumulatively more than N4.4 trillion as intervention funds to the private sector
As of July 2022, the Central Bank of Nigeria (CBN) has disbursed cumulatively more than N4.4 trillion as intervention funds to the private sector.
The Central Bank of Nigeria has a long history of private sector intervention programmes. This narrative rose to its peak after the Covid 19 pandemic which ravaged the global economy. Although the majority of the beneficiaries often defaulted on the loans. This has raised a lot of questions about these intervention programmes.
As contained in the monetary policy communique of the central bank, the CBN has disbursed a total of N4.4 trillion on the Anchor Borrowers’ Programme (ABP), Commercial Agriculture Credit Scheme (CAC), Real Sector Support Fund, Greenfield and Brownfield Projects and 100 for 100 Policy Initiative.
Other interventions include disbursement to the health sector, power sector, and metering.
After a closer perusal, Investors King identifies that the cumulative disbursement under the Real Sector for Manufacturer took the lead with N2.183 trillion. This disbursement was to fund 414 real sector projects across the country.
The Anchor Borrowers’ Programme followed with N1.01 trillion which was disbursed to over 4.2 million smallholder farmers across the country. The apex bank revealed that its flagship Anchor Borrowers’ Programme (ABP) has changed Nigeria’s long-standing dependence on imported rice with the country now a rice exporting country.
A cumulative sum of N744.32 billion was disbursed under the Commercial Agriculture Credit Scheme to finance 678 projects in the agro-production and agro-processing sectors.
N68.13 billion was disbursed to beneficiaries under its 100-for-100 Policy while N133.42 billion was disbursed for 129 projects, comprising 76 hospitals, 32 pharmaceuticals, and 21 other healthcare services.
Cumulative disbursements for the power sector currently stand at N254.46 billion while N47.82 billion was disbursed under the National Mass Metering Programme (NMMP) for the procurement and installation of 865,956 meters across the country.