CBN Pumps N130 Billion into Real Sector

The Central Bank of Nigeria (CBN) has released over N130 billion to small and medium scale enterprises (SMEs) through the Bank of Industry (BOI).
The fund will be accessed through authorized institutions.
The succor came to the real sector as the leader of the International Finance Corporation (IFC) delegation, Mr. Jyrki Koskelo, expressed satisfaction over the manner which the financial crisis in the banking industry was being addressed by the apex bank.
The delegation was in Nigeria to offer support to the quick resolution of the banking sector crisis. The amount form part of the N500 billion infrastructure fund meant to assist the real sector.
Speaking at a press briefing shortly after receiving the delegation in Abuja, CBN Governor, Mallam Sanusi Lamido Sanusi, said over N200 billion would be disbursed to the SMEs before the end of the year.
The delegation stated that the IFC was keen in supporting the banks to enable them extend credit to critical sectors of the economy like power and agriculture as well the strengthening the nation's stock market. IFC, an arm of the World Bank recently announced the injecting about $300 million into Nigerian banks to support attempts to revamp the banking sector.
The amount is for the first phase of the support planned by the institution. Koskelo, IFC Vice-president for Global Industries said the support is to major financial institutions in Nigeria and is part of IFC’s broader strategy to the strengthening of Nigerian banks in the aftermath of the global financial crisis.
He said the IFC is hatching strategies which will encourage Nigerian banks to invest in small and medium scale enterprises (SMEs).
According to him, in every country require the assistance of institutions like the IFC, adding the Corporation would continue to work with the CBN and banks to ensure that the sector maintains a balance on the long run.
“Our role is to be supportive of what the CBN is doing; we are going to engage in other transactions in the Nigerian economy to especially strengthen the banks and have a strong economy in Nigeria. One important thing is to fix the banks and the CBN is doing that very well, I must admit, we will encourage the banks to invest more in SMEs, power, health, agribusiness and infrastructure.
“We are sponsoring risk management, good corporate governance and we will have to encourage the private sector to invest in power because the CBN or government alone cannot do it, there must be a policy in place for that as well. There is need to grow the capital market so as to boost growth, we would support CBN’s clean up exercise in terms of the reforms and this is a road with several steps,” he said.
Banks that will benefit from the intervention by IFC includes United Bank for Africa, First Bank of Nigeria Plc, Guaranty Trust Bank Plc, Ecobank Nigeria Plc, Access Bank Plc, First City Monument Bank Plc, Diamond Bank Plc, Zenith Bank Plc and Stanbic IBTC bank Plc.
The banks were selected based on their best governance practices attested internationally; their long term partnership with the IFC; the strength of the banks, said the institution