The Central Bank of Nigeria (CBN), has lamented the poor repayment of intervention credit facilities it has so far provided.
Speaking at the 2022 Retreat for the Development Finance Department in Abuja, Aishah Ahmad, the Deputy Governor, Financial System Stability Directorate of the central bank, noted that the poor repayment of loans by beneficiaries might affect the sustainability of the bank’s initiatives.
While stating the importance of the interventions to the Nigerian economy, she urged beneficiaries of the CBN loans to pay back to enable others to benefit from the interventions.
Her words: “In recent years, the efforts and interventions of the CBN have ushered in a lot of growth and impact. It helped us combat extreme poverty and food insecurity and grow the agricultural sector and manufacturing base.
“But it also brings in considerations and we are well aware of these considerations. Of course, the most obvious is the risk of poor recovery rate on some of the loans we give out, which may be a burden on the institution, but most importantly may affect the sustainability of our initiatives.
“We also try to empathise with all stakeholders that all of these are loans and not grants. It is important you pay back so that others can also get the same opportunity.”
How much has CBN disbursed as intervention loans?
BizWatch Nigeria understands that the apex bank had so far disbursed no less than N9.71 trillion as intervention loans in its bid to boost the country’s economy.
A breakdown of the figure showed that the manufacturing/industry sector had the highest allocation of 32.6%.
It was followed by energy/infrastructure and agriculture with 23. 1% and 22.8% allocations, respectively.
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