The Manufacturers Association of Nigeria (MAN) on Thursday said that its members hardly access many intervention funds set up by the Central Bank of Nigeria (CBN).
The association, in statement signed by the Director-General, Segun Ajayi-Kadir, said despite the availability of several fund to support their businesses, manufacturers still suffered the dual challenges of scarcity of investible funds and high lending rate.
According to him, eligible commercial banks through which manufacturers tried to apply for the funds were avoiding disbursing the loans.
“Manufacturers hardly access these funds!” he said.
Ajayi-Kadir added, “Generally, MAN observed through feedbacks from members and interaction with the CBN on several occasions that these facilities and funds have not been adequately accessible to manufacturers due mainly to the prevarication of the participating financial institutions (PFIs) and deposit money banks (DMBs).”
Specifically, the DG said the CBN’s N1 trillion COVID-19 Stimulus for Manufacturing and Import Substitution, which commenced in 2020, had only been accessed by 76 companies, which received N300 billion, representing 30 percent of its members.
The N1 Trillion COVID-19 Stimulus for Manufacturing and Import Substitution was instituted in 2020 to sustain manufacturing and improve the output of the sector. It was to be managed by PFIs, which included commercial banks and development finance institutions.
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While acknowledging the excellent initiative of the CBN in setting up the N1 trillion COVID-19 facility, MAN noted that most of its members who applied were not able to get it.
According to him, the reason given by banks for not providing access to the loans was because they have not received the framework for the administration of the facility from the CBN.
The association called for enforcement by the CBN, especially with respect to the N1trillion manufacturing and import substitution facility, the N220 billion Micro, Small and Medium Enterprises Development Fund (MSMED), the 100 billion Health Care and Pharmaceuticals Support Funds and N300 billion Real Sector Support Facility (RSSF).
MAN suggested, “There should also be periodic report of the status of implementation to the CBN to ensure progressive monitoring. In addition, PFIs and DMBs who fail to diligently and timeously disburse ALL the funds allocated should be sanctioned.”
CBN’s Naira 4 Dollar Scheme
Commenting on the Naira 4 Dollar Scheme recently introduced by the CBN, the association said the scheme should encourage Nigerians working abroad to remit more into Nigeria and improve the forex inflow.
It noted, however, that the apex bank must dimension the inflows, which had historically been 70 percent for family support and 30 percent for other purposes, including real estate, which carried the greater part.
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“To yield more of the anticipated inflow for investment in productive activities, the CBN would have to work with the banks and other relevant government agencies to initiate portfolios and measures to point the remitters in that direction,” MAN advised.
The association noted that there was also a need to consider where the domestic foreign exchange-earners stood within the context of this scheme.
The DG urged the financial regulator to consider extending the initiative to manufacturers, who export their products and repatriate the funds in dollars.
MAN added, “For instance, could a manufacturer who exports his product and repatriates his dollar profit get his money in dollars and also benefit from the Dollar 4 Naira Scheme?
“This way, you can guarantee almost a 100 percent re-investment in production and reap all the attendant benefits and even partly make up for the losses incurred due to the poor implementation of the Export Expansion Grant (EEG).
“The average manufacturer who is confronted with a lot of infrastructure and macroeconomic challenges is eminently qualified, if not more qualified, to benefit from such a scheme,” the association said.
 on Thursday said that its members hardly access many intervention funds set up by the Central Bank of Nigeria (CBN).){kind=link}