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The Central Bank of Nigeria has said it disbursed N803bn as of February this year to manufacturers in the country .
The gesture was manufacturing sector’s intervention funds,according reports on the Monetary Policy Committee of the apex bank.
“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,” it stated.
It stated that the intervention facility was to support the Federal Government’s palliative measures to support beleaguered manufacturing enterprises in priority economic activities.
The guideline stated that it also focused on boosting local manufacturing capacity and support mass employment, wealth creation and foreign reserve accretion.
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.
It also 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 guideline said 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.
Meanwhile,the apex bank has commenced the registration of “Other Financial Institutions’’ (OFIs) on its Credit Risk Management System (CRIMS) to improve credit risk management.
“Other Financial Institutions’’ are Development Finance Institutions (DFIs), Microfinance Banks (MFBs), Primary Mortgage Banks (PMBs) and Finance Companies (FCs)
CBN’s Director, Financial Policy and Regulation Department, Kevin Amugo, stated in a circular on Tuesday that with the successful implementation of CRIMS in commercial banks, it was time to accommodate Other Financial Institutions.
He stated that the system was designed to improve credit risks in commercial, merchant and non-interest banks.
Amugo urged all affected financial institutions to report all credit facilities to the platform.
“Accordingly all DFIs, MFBs and FCs are required to report all credit facilities (principal and interest) to the CRIMS and to update same on monthly basis,’’ he stated.
He reminded the OFIs that Bank Verification Numbers and Tax Identification Numbers were the only basis for “regulatory renditions.’’
The CBN director also urged the OFIs to conclude the tagging of all live credit files for all borrowers by May 14.
He advised concerned OFIs to acquaint themselves with the regulatory guidelines for the operations of the redesigned CRIMS for commercial, merchant and non-interest banks.
The guidelines were issued in February and September of 2017.
“Note that the CBN will monitor compliance with the requirements of this circular and non-compliance will attract appropriate sanctions,’’ Amugo warned.
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