BY BAMIDELE FAMOOFO
Between April and May 2022, the Central Bank of Nigeria released the sum of N57.91 billion under the Anchor Borrowers’ Programme to 185,972 new projects for the cultivation of rice, wheat, and maize, bringing the cumulative disbursement under the Programme to N1.01 trillion, disbursed to over 4.2 million smallholder farmers cultivating 21 commodities across the country.
The Bank also announced that lending rate to its development finance initiatives will remain at five percent till March next year despite its decision to raise interest rate by 1.5 percent for the first time in 70 months.
The decision was announced in a communiqué issued by the Monetary Policy Committee after its meeting in Abuja last week.
The Bank further disbursed the sum of N1.50 billion, under the Accelerated Agriculture Development Scheme (AADS), to one new youth-led project, piloted and funded through the Government of Ondo State for the acquisition of assets for oil-palm cultivation and the establishment of poultry farms. This brings the total disbursement under the Scheme to N21.23 billion for 10 state-led and three private sector-led projects.
In addition, the Bank released N21.73 billion to finance seven large-scale agricultural projects under the Commercial Agriculture Credit Scheme.
The funds were utilized for the establishment of a ranch and milk processing facility; procurement of feed and medication for livestock/dairy production; construction of a 300 metric-tonne per day oil mill in Gusau, Zamfara State; acquisition and installation of an agrochemical factory; as well as purchase and stockpiling of homegrown maize for animal feed production.
This brings the cumulative disbursement under this Scheme to N741.05 billion for 674 projects in agro-production and agro-processing.
Under the Paddy Aggregation Scheme, N6.20 billion was disbursed by the Bank to three new projects for the purchase and mopping-up of home-grown rice paddy. This brings the total funds disbursed to 42 integrated rice millers under the PAS to N106.39 billion.
“In addition, the Bank released N21.73 billion to finance seven large-scale agricultural projects under the Commercial Agriculture Credit Scheme”
To support the growth of the manufacturing sector, the Bank disbursed the sum of N436.85 billion to 34 new projects under the N1.0 trillion Real Sector Support Facility.
This was utilized for both greenfield (new) and brownfield (expansion) projects under the COVID-19 Intervention for the Manufacturing Sector (CIMS) and the Real Sector Support Facility from Differentiated Cash Reserve Requirement (RSSF-DCRR).
Cumulative disbursement under the RSSF for the financing of 402 real sector projects across the country currently stands at N2.10 trillion.
The Bank disbursed N55.34 billion, under the 100 for 100 Policy on Production and Productivity (100 for100 PPP), to 44 projects, comprising 24 in manufacturing, 17 in agriculture, two in healthcare, and one in the services sector.
In the healthcare sector, the Bank disbursed N17.70 billion to four healthcare projects under the Healthcare Sector Intervention Facility, bringing the cumulative disbursements to N130.49 billion for 126 projects, comprising 58 hospitals, 31 pharmaceuticals and 37 other healthcare services.
The Bank released the sum of N21.00 billion Under the Export Facilitation Initiative, for three projects in domestic production and value addition of cocoa and sesame seed. This intervention is targeted at further expansion of the economy’s non-oil export basket towards improving foreign exchange revenue earnings for the country.
To support micro, small and medium enterprises, the Bank disbursed N1.50 billion to 2,718 new projects through the Agri-Business Small and Medium Enterprises Investment Scheme for activities in fish farming, rice processing, wheat farming, poultry farming, livestock farming, ICT and tailoring amongst others. This brings the cumulative disbursements under AgSMEIS to N136.13 billion.
Under the Micro, Small, and Medium Enterprises Development Fund, the Bank disbursed N2.79 billion to support youths engaged at various nodes of the agricultural value chain, bringing the total disbursement under this intervention to N98.88 billion to 749 MSME projects across the country.
In energy/infrastructure, the Bank released N15.71 billion to power sector players including generation companies and gas companies, under the Nigeria Bulk Electricity Trading Plc – Payment Assurance Facility, bringing the cumulative disbursement under the facility to N1.30 trillion.
The sum of N22.67 billion was also released to Distribution Companies (DisCos) for their Operational Expenditure (OpEx) and Capital Expenditure (CapEx), under the Nigeria Electricity Market Stabilisation Facility – Phase 2 (NEMSF-2). Cumulative disbursement under the NEMSF-2 currently stands at N251.93 billion.
Additionally, under the National Mass Metering Programme, the Bank has disbursed N0.19 billion to DisCos for the procurement of electricity meters, bringing the cumulative disbursement for the procurement and installation of 865,956 meters across the country to N47.82 billion.
Interventions in energy/infrastructure are designed to improve investment and develop enabling infrastructure in the Nigeria Electricity Supply Industry.
