Under Godwin Emefiele, CBN Loaned N5.6trn to Manufacturers, Power, Others in 3 Years
- A CBN report shows that manufacturing, aviation, and power received N5.6 trillion between 2020 and 2022
- The loans were granted with single-digit interest rates and long repayment tenors under suspended CBN governor Godwin Emefiele
- According to the CBN, total receivables and other assets amounted to N47.39 trillion as of 2022
The Central Bank of Nigeria (CBN) has increased its intervention in the manufacturing, aviation, and power sectors to N5.6 trillion over the last three years.
According to CBN results and accounts between 2020 and 2022, the soft loans were provided under the leadership of Godwin Emefiele in the face of the continuous and numerous challenges that the major economic sectors encountered.
Source: UGC
According to a report by Legit.ng, as of the fiscal year that concluded in December 2022, the apex bank owed JP Morgan and Goldman Sachs a combined $7.5 billion. The top bank listed a $6.3 billion debt for foreign currency forwards as part of its obligation.
Loan from CBN hit N5.6 trillion
According to information on credit concentration in the major economic sectors, Punch reported that loans from the central bank for the manufacturing, aviation, and electricity sectors amounted to N5.6 trillion.
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Under the leadership of its suspended governor, Godwin Emefiele, the CBN engaged in aggressive lending competition with commercial banks in some economic sectors. However, the loans from the apex banks had extensive repayment terms and single-digit interest rates.
CBN's account breakdown
According to the breakdown, the CBN's receivables and other assets in Nigeria's electricity and aviation sectors amounted to N50.6 billion in 2022, down 96.4% from N1.39 trillion in 2021. Additionally, it reported N935 billion in the power and aviation sectors in 2020.
Revenue from manufacturing increased by 33.46% to N1.23 trillion in 2022 from N919.03 billion in 2021. Additionally, the manufacturing sector accounted for N1.07 trillion in 2020.
The apex bank revealed that as of 2022, the total value of its receivables and other assets was N47.39 trillion, up from the N43.18 trillion reported in 2021. Receivables from the federal government accounted for a sizable part.
“Demand is overwhelming”: CBN to intervene, pump more dollars into market
Legit.ng earlier reported that plans were finalised by the Central Bank of Nigeria (CBN) to stop the naira's relentless decline against the dollar. According to a source, one of these plans is to flood the market with dollars.
This follows a previous report that stated the CBN had promised to take action to steady the value of the naira in relation to the dollar.
After briefing President Bola Tinubu on Monday at the State House about the bank's efforts to stem the fall, Folasodun Sonubi, the acting governor of the Central Bank of Nigeria, revealed this to the media.
Source: Legit.ng
