CBN pledges continuity in development financing

The recessionary mode of the economy notwithstanding, the Central Bank of Nigeria (CBN) has pledged to sustain its development financing initiative.

The scheme, though not its primary mandate, but an intervention that serves the need to stimulate growth with lower interest rate to borrowers, also helps in its management of the monetary policy.

The Governor, Central Bank of Nigeria (CBN), Godwin Emefiele, who made the pledge, also urged the financial and business correspondents to endeavor to report the Nigerian economy in positive light.

Emefiele, who was represented by the Director, Monetary Policy Department, CBN, Moses Tule, in a keynote address at the ongoing 22nd edition of the Finance Correspondents and Business Editors Seminar, in Abakaliki, Ebonyi State, said the consideration for the economy must be paramount.

He appealed to financial journalists to be conscious of the fact that foreign investors form their perception of the economy based on the reports they read, hence the need to be cautious.

Reiterating the apex bank’s determination to support growth in the economy, he said the institution’s activities now transcend the core mandate of monetary and price stability and involves developmental activities to stimulate growth.

According to him, the developmental initiatives have become ever necessary given that we are a developing economy, with the inherent development challenges.

This, he said, informed the bank’s decision to devote critical resources by way of intervention in agriculture schemes, Micro, Small and Medium Enterprises (MSMEs) and in the area of infrastructure.

These interventions include the Agricultural Credit Guarantee Scheme Fund (ACGSF), Commercial Agricultural Credit Scheme (CACS).

He, however, explained that these interventions do not intend to crowd out financial institutions in credit delivery, but rather as incentives to propel lending at reasonable rates to the real sector.

Meanwhile, Eboyi State government has affirmed it received the support of the apex bank under its Anchor Borrowers Scheme.

The state Governor, David Umahi, who was represented by the Commissioner of Justice and Attorney General, Augustine Nwankwagu, also said the government is involved in various agricultural programmes in pursuit of food sufficiency for its citizens through its ‘one man one hectare’ policy among several other efforts.

He said the state is blessed with over 29 mineral resource deposits, which include salt and limestone, noting that with the diversification of the economy to non-oil sectors, the state is now open to investors for partnership in harnessing the rich mineral resources.

Already, the state has extended invitations to private investors in effort to resuscitate the state’s moribund cement company.