Ladies and gentlemen, welcome to this week’s edition of the Inspiring Country Actions Series!
In this edition, we are going to focus our attention on how the Government is building a sustainable economy for the country through the Central Bank of Nigeria.
In a bid to boost economic development in the country, the Government established a number of policies to promote agricultural businesses, micro, small and medium enterprises (MSMEs) across the country.
Therefore, in accordance with such policies, the Central Bank of Nigeria (CBN) designed several “Access to Finance” programs aimed at building a virile economy for the country.
One of such programs is the voluntary initiative of the Bankers’ Committee called the Agriculture, Small and Medium Enterprises Investment Scheme (AGSMEIS), which was approved in February 2017 requesting all banks in Nigeria to reserve 5% of their profit after tax (PAT) yearly to this cause. The AGSMEIS is currently offering ten million naira without collateral to agricultural businesses and MSMEs.
The Nigerian Incentive-Based Risk Sharing in Agricultural Lending (NIRSAL), which is another initiative of the CBN, has also approved the release of about N75 billion loan to farmers in all 36 States and the Federal Capital Territory (FCT) to foster more economic growth in the agricultural sector of the nation.
The Agricultural Credit Support Scheme (ACSS), which is another program of the CBN enables farmers exploit the dormant potentials of the agricultural sector in Nigeria. The scheme was designed to decrease inflation, reduce production cost, increase surplus produce enough to export, increase foreign earnings and diversify revenue base.
Another scheme of the CBN in collaboration with the Federal Ministry of Agriculture and Water Resources (FMA&WR) is the Commercial Agriculture Credit Scheme (CACS), which is a sub-component of the Federal Government of Nigeria’s Commercial Agriculture Development Program (CADP) that is financed through a N200 billion Bond raised by the Debt Management Office (DMO).
There are a whole lot of other interventions being implemented by the CBN but time and space will not permit us to showcase all of them here in this edition.
One thing common with all these programs are their overall objectives, which can summarized as follows:
a)To develop the agricultural, ICT, manufacturing sectors, etc in Nigeria by offering credit facilities at a single digit interest rates;
b)To improve national food security by increasing food supply, decrease prices of agricultural produce thus, reducing food inflation;
c)To reduce unemployment in the country by creating jobs for the teeming unemployed youths in the agricultural value chains.
What about the CBN COVID-19 Palliatives for households and SMEs which the government released in order to support businesses affected by the pandemic?
Good people of Nigeria, we want to believe that you are benefiting from one or two of these great initiatives implemented by the CBN to improve almost every sector of our economy.
At the Ugwumba Center for Leadership Development in Africa, we celebrate the giant strides the Government is making through the Central Bank of Nigeria to promote economic growth in the country.
This campaign is powered by the Ugwumba Center for Leadership Development in Africa.