The Central Bank of Nigeria (CBN) said it has so far disbursed a total sum of N9.3 trillion to Small and Medium Enterprises (SMEs), Agriculture, manufacturing and health sectors under its intervention funds program.
Dr Yusuf Yila, Director of Development Finance, CBN, made the announcement during a media engagement in Abuja on Wednesday.
According to the director, the apex bank has recovered N3.7 trillion from the total amount disbursed, saying the remaining N5 trillion was not yet due.
He, however, stated that 31% of the total amount was disbursed to the manufacturing sector, the largest for any sector.
“Some of the loans are under moratorium. We have moved from agriculture to manufacturing. So far, manufacturing, agriculture, health, exports and SMEs, have benefitted from the intervention,” he said.
Yila further stated that the central bank has now slowed down fund disbursement under its various intervention programs to curb rising inflation after data showed inflation rose to 20.52% in the month of August despite efforts to contain it.
The CBN-led monetary policy committee on Tuesday raised the interest rate by 150 basis points from 14% to 15.5% to rein in inflation and also remain competitive against global economies in luring investors into the Nigerian economy.
Developed economies started raising interest rates after the Russia-Ukraine war impacted global economies and compelled most nations to start tightening monetary policy to curb consumer prices. The persistent increase in interest rates (borrowing costs) in developed economies is expected to hurt capital inflow into the Nigerian economy, except the CBN raised borrowing costs to compensate for emerging market risks.
On Anchor Borrowers Programme, the CBN said it has disbursed N1 trillion to date, but announced that only N400 billion has been recovered.
He, however, warned debtors to ensure to repay their loans to various banks that granted them as the bank has collaborated with the Economic and Financial Crimes Commission (EFCC) to set up a unit that will help recover the loans.
“Any person who borrowed from us will pay back. We have recovered from states and we debit their FAAC. Every single loan taken from our development finance will be returned.”