Central Bank of Nigeria (CBN) has put the real sector intervention spending at N1 trillion while the apex bank said N798 billion has been disbursed to support farmers from its anchor borrowers programme (ABP), a move to drive economic growth.
The apex bank made this known in its communique released ahead of its last monetary policy committee meeting for 2021. The pandemic break in 2020 had impacted the proper functioning of the Nigerian and global economies, dragged gross domestic product into holes.
Nigeria, a petrol-dollar driven economy, was not excused from the pandemic drills despite efforts by the government. At that point, Nigeria economy became distressed as growth turned negative.
In the second quarter of 2021, gross domestic products expanded more than 5%, from a tepid growth recorded in the first quarter of the year amidst heavy intervention spending by the CBN.
To drive growth, the CBN had pushed out a number of support that some critics claimed was far behind expectations for a country with a $400 billion economic balance sheet.
In a recent communique issue ahead of its final monetary policy committee meeting for 2021, the CBN said under its Anchor Borrower Programme, a total sum of N798.09 billion has been released to 3.9 million smallholder farmers across the country.
The sum was disbursed to 3.9 million smallholder farmers who are cultivating 4.9 million hectares of land across the country. Though prices of foods item remain on the upside amidst a double-digit inflation condition.
Out of this, CBN said for the 2021 wet season farming, it has released the sum of ₦161.18 billion to 770,000 small-holder farmers cultivating seven commodities on 1.10 million hectares across the country.
While harvesting for the 2020 dry season under the Programme is rounding up, harvesting activities have commenced for the 2021 wet season cultivation, the apex bank said.
It noted that its strategic maize reserve programme has been useful in moderating maize prices by directly targeting large feed mill producers. Recall that Maize was listed among items that would not be supported with FX for importation.
The apex bank had banned 41 items from accessing foreign exchange from its official window.
The communique further stated that under Commercial Agriculture Credit Scheme (CACS), the CBN indicated it has supported 657 large-scale agricultural projects, to the tune of N708.39 billion.
To support MSMEs across the country, the Bank disbursed N134.57 billion to 38,140 beneficiaries under the Agribusiness/Small and Medium Enterprise Investment Scheme (AGSMEIS), and for the Targeted Credit Facility (TCF).
It added that the sum of N343.21 billion has been released to 726,198 beneficiaries, comprising 602,730 households and 123,468 Small and Medium Enterprises.
Taking the largest share of its disbursements, CBN said under the real sector facility, it has released the sum of N1.00 trillion to 269 real sector projects, of which 140 are in light manufacturing, 71 in agro-based industry, 47 in services and 11 in mining.
Also, its Healthcare Sector Intervention Facility (HSIF) has gulped N103.02 billion, disbursed for 110 healthcare projects, of which 27 are pharmaceutical, 77 hospitals and 6 other healthcare service projects.
In addition, the Bank revealed that a total of N145.99 billion has been disbursed under its Non-Oil Export Stimulation Facility (NESF). It noted that guidelines for working with Nigerian Export-Import Bank have been revised to improve access to the intervention and stimulate non-oil export growth in Nigeria.
Under the National Mass Metering Programme (NMMP), CBN hinted that a total sum of N41.06 billion has been disbursed to ten (10) Discos, for the procurement and installation of 759,748 5 electricity meters.
Again, from its Nigerian Electricity Market Stabilization Facility (NEMSF-2), the Bank has released the sum of N145.66 billion to 11 Discos as loans to provide liquidity support and stimulate critical infrastructure investment to improve service delivery and collection efficiency.
In furtherance of its intervention in the energy sector, CBN said a sum of N39.20 billion has been disbursed to six (6) beneficiaries to improve gas-based infrastructure to support the Federal Government’s Auto-Gas Conversion Programme.
The lender of last resort said it also encouraged Deposit Money Banks (DMBs) to participate in the Solar Connection Facility (SCF) to improve energy access in the rural areas.
“To promote entrepreneurship development among Nigerian youth, the Bank recently approved the implementation of the Tertiary Institutions Entrepreneurship Scheme.
“The Scheme is designed to promote entrepreneurial activities and foster job creation among Nigerian youths”.
The communique stated that The Committee expressed optimism that with the current level of monetary and fiscal stimuli, as well as efforts to increase vaccination and contain the Pandemic, the economy will continue to improve in the short to medium term.
Interventions continued largely in Manufacturing, Agriculture, Energy/infrastructure and Micro, Small, and Medium Enterprises (MSMEs).
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