The Central Bank of Nigeria (CBN’s) intervention funds to the manufacturing sector rose to N803bn as of February.
Techeconomy.ng obtained the figures from the CBN’s report on the Monetary Policy Committee revealed this on Tuesday, April 12.
The report read: “Under the N1tn manufacturing intervention stimulus, the total of N803.36bn has been disbursed to 228 projects across various sectors in agro-allied, mining, steel production and packaging industries, among others,”
This medium can report that the CBN, in May 2020, introduced guidelines for the implementation of the COVID-19intervention facility for the manufacturing sector.
The central bank explained that the intervention facility was to support the Federal Government’s palliative measures to support beleaguered manufacturing enterprises in priority economic activities.
It noted that its focus is on boosting local manufacturing capacity and support mass employment, wealth creation and foreign reserve accretion.
According to it, Part of the objectives was to improve access to affordable credit by domestic manufacturing enterprises across critical sectors of the economy; and close financing gap necessary for the replacement of machinery and equipment to enhance local production.
The apex bank, however, sought to refinance existing facilities of manufacturing enterprises in priority sectors of the economy; and facilitate the procurement of state-of-the-art machinery and equipment, as well as automated manufacturing models that would fast-track domestic production and economic rejuvenation.
The CBN noted that it supported increased patronage of made in Nigeria products, industry resilience, employment creation and retention, and accretion to foreign reserves.
Eligible manufacturing enterprises must be an entity registered in Nigeria under the Companies and Allied Matters Act of 1990 and engaged in specific areas.
The areas are cement basic metal, steel, and iron rods; textile, apparel, and footwear; electrical and electronics, including computer; renewable energy products; light manufacturing in general including fast-moving consumer goods, basic non-durable household goods, and other consumables, except cigarettes and tobacco.
It also includes food, drinks and beverages; agro-processing; chemical and pharmaceutical products; pulp, paper and paper products; plastic and rubber products; wood and wood products; and any other manufacturing activities as may be prescribed by the CBN.
The CBN allowed manufacturing enterprises that had accessed any of its existing intervention programmes and schemes to be eligible to apply under the facility, provided their existing credit facility was performing.