CBN Interventions Boost Economy, Create Jobs
The Central Bank of Nigeria (CBN) is boosting the national economy with its development finance initiatives. The apex bank is also creating millions of jobs with these initiatives which span the major sectors of the Nigerian economy, including agriculture, manufacturing, micro, small and medium scale enterprises, infrastructure.
Dr. Mudashir Olaitan, Director, Development Finance Department, CBN disclosed these at the Master Class on CBN Development Finance Initiatives for Editors organised by Centre for Financial Journalism (CFJ) recently in Lagos. The Master Class which was basically a knowledge enhancement programme had close to 20 Editors from print and electronic media in attendance.
Its objective was to give the Editors useful insight into CBN development finance initiatives and their impact on the national economy.
According to Dr. Olaitan, CBN interventions since 2009 has two major goals – strengthening of the financial system through quantitative easing policy, and direct support to industry that has high job creating capacity and other vital economic agents.
Elaborating, he said the focus of the bank’s quantitative easing policy is to address the persisting tight credit conditions and the continuing under-performance of key monetary aggregates and restructure/refinance deposit money banks’ exposures to the manufacturing sector and SMEs to ensure the smooth flow of credit to the real sector of the economy.
The direct support to industry, on the other hand, is aimed at fast-tracking the development and access to credit facilities by large commercial agricultural enterprises to increase output and create jobs, facilitate access to affordable credit by micro and small businesses, particularly women enterprises, and promote investment in the power sector to achieve sustainable growth.
He said the objectives of the interventions are: increase lending to the critical sectors of the economy; provide access to affordable credit; diversify the country’s economic base, create jobs and improve macroeconomic stability; boost the capacity of MSMEs; conserve foreign exchange reserves; encourage exports; and expand output of agriculture, manufacturing and services sub-sectors.
These objectives, Dr. Olaitan said, are being achieved. According to him, the Commercial Agriculture Credit Scheme (CACS), for instance, has resulted in the disbursement of N393.73 billion in favour of 460 projects and has contributed to the creation of 1,132,260 jobs along the various agricultural value chains and increased capacity utilization of agro-allied companies.
He added that under the Anchor Borrowers’ programme, N16.48bn has been disbursed to 100,000 small holder farmers through 22 private anchors in six states while 26 states have expressed participation under the wet season farming. This programme, he said has led to the creation of more than 500,000 jobs.
Dr. Olaitan also revealed that the N300 Billion Real Sector Support Fund (RSSF) and N50 Billion Textile Intervention Facility (TIF) are also creating thousands of jobs. According to him, the six projects which have benefitted N6.85 billion under the RSSF have contributed to the creation of 17,000 direct and indirect jobs, while the N14.91 billion disbursed to 24 projects under the TIF has boosted capacity by 25% and added 7,000 jobs.
He listed other CBN development finance initiatives which are boosting the economy and helping to create millions of jobs as: N200 Billion Small and Medium Enterprises Restructuring and Refinancing Facility (SMERRF); Small and Medium Enterprises Credit Guarantee Scheme (SMECGS); N220 Micro Small and Medium Enterprises Development Fund (MSMEDF); Secured Transaction and National Collateral Registry (ST&NCR); Youth Empowerment Development Programme (YEDP); Power and Airline Intervention Fund (PAIF); and Nigeria Electricity Market Stabilization Fund (NEMSF).