The Central Bank of Nigeria says it has supported the real sector of the economy to the tune of over N1.3tn as part of its efforts to tackle the challenges facing the economy.
The support, according to the CBN, includes the N300bn Real Sector Support Facility; N220bn Micro-Small and Medium Enterprises Development Fund; N75bn Nigeria Incentive-Based Risk Sharing System for Agricultural Lending; and the N213bn Nigeria Electricity Market Stabilisation Fund.
Others are the N50bn Nigeria Export Import Bank Fund; and the N500bn Export Refinancing and Restructuring Facility.
The Governor, CBN, Mr. Godwin Emefiele, stated this while declaring open a seminar for financial journalists in Ibadan on Monday.
Emefiele, who was represented by the Deputy Governor, Corporate Services, CBN, Mr. Adebayo Adelabu, said that beyond the primary mandate of the central bank which is to ensure monetary, price and financial system stability, it had gone a step further to support different sectors of the economy for developmental purposes.
He said, “The far-reaching objectives of the CBN in the implementation of schemes and programmes for real sector development focuse on the inherent potential in the sector vis-à-vis our conviction that the sector has sufficient employment capabilities, high growth potential, contributes significantly in accretion to foreign reserves, expands the industrial base and apparently diversifies the growth potential of the national economy.
“The real sector, as you know, is the engine of every economy as it facilitates the production of raw materials, which add value to the domestic economy, and consequently serves as a source of wealth creation and income generation to the productive population; the real sector also provides effective linkages among crucial sub-sectors such as agriculture, manufacturing, power and financial services, among others.”
According to Emefiele, studies have shown that central banks in developed economies like the United States and the United Kingdom have intervened directly in boosting their economies.
He explained that the real sector, which consists of the agricultural, industrial, building and construction sub-sectors, accounted for 83.67 per cent of the country’s Gross Domestic Product in 2000, adding, “The sector’s contribution, however, witnessed a decline to 76.21 per cent in 2000 and further down to 70.71 per cent in 2013.”