The Central Bank of Nigeria (CBN) has so far disbursed a total of N803bn supporting the Manufacturing sector as of February. These were revealed from Figures obtained from the CBN reports on the Monetary Policy Committee.
“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.
In May 2020, the CBN introduced guidelines for the implementation of the COVID-19 intervention facility for the manufacturing sector.
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 supporting 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 gaps 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.