In a bid to focus on its statutory role the Central Bank of Nigeria CBN under Cardoso’s leadership will no longer directly engage in development finance initiatives; signaling an end to various CBN intervention programs, like the
– Anchor Borrowers Programme,
– 100 for 100 Policy on Production and Productivity (PPP),
– Real Sector Facility (RSF)
– Nigeria Electricity Market Stabilization Facility, among others.
These programs have seen disbursements of over N9.71 trillion in the past three years.
In a document made available to newsmen, the CBN’s involvement in development financing has led to a blurring of the lines between monetary policy and fiscal intervention.
CBN intends to now transition into a more limited role centered on providing advice to support economic growth.
Consequently, the CBN’s advisory roles will encompass acting as a catalyst for the establishment of specialized institutions and financial products that boost emerging sectors of the economy.
The emerging sector is expected to work on facilitating new regulatory frameworks to unlock untapped capital in land and property holdings, improving access to consumer credit, and expanding financial inclusion.
The focus will also be on reducing risk to attract more private sector investment in housing, textiles and clothing, food supply chains, healthcare, and educational supplies.
These sectors exhibit significant demand patterns and potential for high local input and value retention, which can serve as the foundation for rapid industrialization the statement said.
The CBN will also utilize its convening power to bring together key multilateral and international stakeholders in both government and private sector initiatives.
(C) ControlTV 2023
