- 14 participating banks repay N17bn for 51 projects
The Central Bank of Nigeria has, in the last nine years, injected a total of N560.9 billion into the commercial agriculture credit scheme from 2009 to June 2018, and was used to finance 557 projects.
According to the half-year economic report for 2018 released by the apex bank over the weekend, the sum of N39.34 billion was disbursed to 16 projects, compared with N50.59 billion released to 11 banks for 34 projects which was released in the half year of 2017.
Further analysis of the CACS in the first half of 2018 showed that the sum of N17.01 billion was repaid by fourteen participating banks in respect of 51 projects, compared with N 28.83 billion for 191 projects in the corresponding period of 2017.
The total sum disbursed, from inception in 2013 to date, iis N81.64 billion, with N56.61 billion (69.3 per cent) to state governments, while the MSMEs collectively accessed N25.03 billion (44.2 per cent)
This brought the cumulative repayment from inception to N273.62 billion at end June 2018.
However, in the first half of 2018, under the Paddy Aggregation Scheme, the sum of N4.25 billion was released to three banks for disbursement to three projects. This brought the total disbursement under the Scheme to N30.38 billion at end-June 2018.
In addition, the implementation of the Micro, Small and Medium Enterprises Development Fund continued with the disbursement of N4.77 billion in the review period, compared with N1.59 billion in the corresponding period of 2017. The participants in the Programme were seven banks; Microfinance Bank, one non-governmental organisation microfinance institution, as well as, two state governments.
The total sum disbursed, from inception in 2013 to date, iis N81.64 billion, with N56.61 billion (69.3 per cent) to state governments, while the MSMEs collectively accessed N25.03 billion (44.2 per cent).
The sum of N4.04 billion was repaid during the period under review, bringing the cumulative repayment to N17.42 billion, since inception, to end-June 2018.
The apex bank also said that the Anchor Borrowers’ Programme continued with the disbursement of N36.37 billion to 155,732 farmers, compared with N12.57 billion to 27 farmers in the first half of 2017.
The cost of domestic debt instruments of the Federal Government of Nigeria stood at N941.99 billion at end-June 2018, representing an increase of 37.04 per cent when compared to N687.37 billion which was spend last year.
The Central Bank of Nigeria in its half year economic activities report said, the increase in the cost was attributable to the rise in the stock of the domestic debt, from N11,860.77 billion at end-June 2017, to N12,151.44 billion at end-June 2018.
A breakdown of the activities however showed that, coupon payments for FGN Bonds, FGN Green Bonds and FGN Savings Bonds accounted for N542.73 billion or 57.62 per cent, N0.72 billion or 0.08 per cent and N0.50 billion or 0.05 per cent, respectively.
Further analysis of the debt instrument showed that the interest payments on Nigeria Treasury Bills and FRN Treasury Bonds stood at N379.51 billion or 40.29 per cent and N10.36 billion or 1.10 per cent, respectively.
Consequently, in the first half of 2018, no application was received under the SME Credit Guarantee Scheme, the number and value of projects guaranteed from inception to date remained at 88 and N4.25 billion.
Also, the Small and Medium Enterprises Restructuring and Refinancing Facility which was introduced to revive ailing manufacturing companies by restructuring and refinancing their credit facilities with deposit money banks, was discontinued in December 2014 and replaced with the Real Sector Support Facility.
However, repayment under the erstwhile Scheme continued, with N12.6 billion repaid during the review period, bringing the total repayment at end-June 2018 to N113.26 billion.
The Real Sector Support Facility was introduced to provide long-term low interest financing facilities to SME/Manufacturers and start-ups. In the review period, the sum of N23.91 billion was disbursed to five projects. Since inception to end-June 2018, a total of N75.92 billion has been disbursed to nineteen
projects.
Repayment during the period was N960.16 million, bringing the cumulative payment to N1.76 billion at end-June 2018.
The Point investigations gathered that the Youth Empowerment Development Programme is yet another CBN intervention in the economy “to assist in job creation and the development of entrepreneurial skills among Nigerian graduates.”
The scheme was established to improve access to finance by youths to develop their entrepreneurial skills using a well-structured business models; stimulate job creation through the development of small and medium enterprises among Nigerian youths; harness the entrepreneurial capacity of Nigerian youths; and increase the contribution of non-oil sector to the nation’s GDP.
“The collateral required here are the NYSC certificate, Tertiary Institutions Certification and 3rd party Guarantors. Registration of collaterals (movables) and financed equipment with the national collateral registry,” CBN stated.
The various CBN interventions have funded the industrial sectors to a large extent with affordable long term finances as well as created jobs. The CBN has been involved in development financing since 1962. Policies affected were focused on improving access to credit by preferred sectors including; agriculture manufacturing, MSMEs, and infrastructure as well as the establishment and strengthening of development finance institutions.
