Cardoso's CBN to Withdraw Financial Support for Farmers, Others After Disbursing N9.7trn in 3 Years
- The CBN will no longer be directly involved in development finance interventions
- According to the report, the apex bank will focus on advisory roles that support economic growth
- The bank will also focus on de-risking instrumentation to increase private-sector investment
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The Central Bank of Nigeria (CBN) intends to stop its involvement in the area of development financing in order to concentrate on advising responsibilities on economic growth, particularly under the new governor, Dr. Olayemi Cardoso.
The CBN's numerous intervention programmes, including the Anchor Borrowers Programme, the 100 for 100 Policy on Production and Productivity (PPP), the Real Sector Facility (RSF), the Nigeria Electricity Market Stabilisation Facility, and others, may come to an end as a result.
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According to a document obtained by Leadership, these programmes have disbursed over N9.71 trillion over the past three years.
Recall that President Bola Tinubu earlier ordered security agencies to go after defaulters of the Anchor Borrowers Loan scheme. Legit.ng also reported that the new CBN governor said the focus will be on resolving the backlog of unpaid foreign exchange.
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There is a need to pull the CBN back
The document claims that the distinction between monetary policy and fiscal intervention has become more hazy because of the CBN's ventures into development financing.
ACCORDING TO THE REPORT, the CBN must be shifted away from direct development financing interventions and into more constrained advising responsibilities that assist economic growth, which refocused the CBN on its fundamental mission.
Accordingly, it stated that one of its advising duties would be to function as a catalyst for spreading specialised institutions and financial products that help develop economic sectors.
The bank will also support new legislative frameworks that would speed up access to consumer credit, increase financial inclusion among the general public, and release dormant capital in land and property assets.
To boost private sector investment in housing, textiles and apparel, the food supply chain, healthcare, and educational supplies, it was further stated that the company would also concentrate on de-risking instruments.
The CBN said:
“These verticals have huge demand patterns, with the potential for high local inputs and value retention, and can be the basis for rapid industrialization and exercise CBN’s convening power to bring key multilateral and international stakeholder participation in government and private sector initiatives.”
Nigeria successfully repays China, India, Germany $1.81bn, services CBN loans with N912bn
Legit.ng reported that According to recent information from the Central Bank of Nigeria (CBN), the Nigerian government set aside a sizeable $1.81 billion to pay off foreign loans in the first seven months of 2023.
According to a study of the sum, the Nigerian government put aside $112.35 million in January 2023 to pay off foreign debt.
The debt payment cost increased from $288.5 million in February to $400.5 million in March.
Source: Legit.ng
