A Highlight of Development Finance Programmes by the Central Bank of Nigeria
In furtherance of its developmental functions under section 31 of the CBN Act, the Central Bank of Nigeria (the “CBN”) has vastly expanded its lending programs to the private sector in a bit to expand productive capacity, locally. The below summarises some of the key intervention programmes of the CBN across sectors
AGRICULTURE
- Anchors Borrowers Programme (ABP)
Between April and May 2022, the CBN released the sum of N57.91 billion to 185,972 new projects for the cultivation of rice, wheat, and maize, bringing the cumulative disbursement under the ABP to N1.01 trillion, disbursed to over 4.2 million smallholder farmers cultivating 21 commodities across the country.
- Agriculture Development Scheme (AADS)
The CBN further disbursed the sum of N1.50 billion, to one (1) 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 AADS to N21.23 billion for 10 state-led and three (3) private sector-led projects.
- Commercial Agriculture Credit Scheme (CACS)
The CBN released N21.73 billion to finance seven (7) large-scale agricultural projects. 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 home grown maize for animal feed production. This brings the cumulative disbursement under the CACS to N741.05 billion for 674 projects in agro-production and agro-processing.
- Paddy Aggregation Scheme (PAS)
The CBN disbursed N6.20 billion to three (3) 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.
- Export Facilitation Initiative (EFI)
The CBN released the sum of N21.00 billion under the EFI for three (3) projects in domestic production and value addition of cocoa and sesame seed.
- Agri-Business Small and Medium Enterprises Investment Scheme (AgSMEIS).
To support micro, small and medium enterprises (MSMEs), the CBN disbursed N1.50 billion to 2,718 new projects through the AgSMEIS 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.
- Micro, Small, and Medium Enterprises Development Fund (MSMEDF).
Under the MSMEDF, the CBN disbursed N2.79 billion to support youths engaged at various nodes of the agricultural value chain, bringing the total disbursement under the MSMEDF to N98.88 Billion to 749 MSME projects across the country.
HEALTHCARE
- Healthcare Sector Intervention Facility (HSIF)
The CBN disbursed N17.70 billion to four (4) healthcare projects under the HSIF bringing the cumulative disbursements to N130.49 billion for 126 projects, comprising 58 hospitals, 31 pharmaceuticals and 37 other healthcare services.
MANUFACTURING
- Real Sector Support Facility
The CBN disbursed the sum of N436.85 billion to 34 new projects under the N1.0 trillion RSSF. This was utilized for both green field (new) and brown field (expansion) projects under the COVID-19 Intervention for the Manufacturing Sector (CIMS) and the RSSF 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.
- 100 for 100 Policy on Production and Productivity
The CBN disbursed N55.34 billion, under the 100 for 100 PPP, to 44 projects, comprising 24 in manufacturing, 17 in agriculture, 2 in healthcare, and 1 in the services sector.
ENERGY
- Nigeria Bulk Electricity Trading Plc – Payment Assurance Facility (NBETPAF).
The CBN released N15.71 billion to power sector players including generation companies (GenCos) and gas companies (GasCos), under the NBETPAF, bringing the cumulative disbursement under the NBETPAF to N1.30 trillion.
- Nigeria Electricity Market Stabilisation Facility – Phase 2 (NEMSF-2).
The CBN released the sum of N22.67 billion to Distribution Companies (DisCos) for their operational expenditure (OpEx) and capital expenditure (CapEx), under the NEMSF-2. Cumulative disbursement under the NEMSF-2 currently stands at N251.93 billion.
- National Mass Metering Programme (NMMP)
The CBN 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.
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