Champion Newspapers Limited
For a better society

23 years of unbroken democracy: Ex-raying CBN’s interventions

101
Print Friendly, PDF & Email

 

 

COMFORT EKELEME, BUSINESS EDITOR

 

Witnessing 23 years of unbroken democratic governance is expected to be among the best things that can happen to any country in terms of economic growth and human development,

Nigeria as a country has since 1999 till date witnessed 23 years of unbroken democratic governance; a development industry watchers maintained is yet to yield the expected result, leading to massive economic development and job creation.

Democracy is associated with higher human capital accumulation, lower inflation, lower inflation, political instability, and higher economic freedom; also it is closely tied with economic sources of growth, like education levels and lifespan through the improvement of educative institutions as well as healthcare.

As democracy expands in developing countries, newly empowered workers are likely to demand better living conditions, health care, and access to clean water, all conditions that contribute to increased life expectancy and, in turn, to increased productivity.

 

Daily Champion, however, recalled that in 1999, Nigeria’s unemployment rate stood at 3.86 per cent, but in 2022, the unemployment rate in Nigeria is estimated to reach 33 per cent, while this figure was projected to be at 32.5 per cent in the preceding year.

Analysts are of the view that the Nigerian government, especially the present administration has failed in its promises of job creation since the inception of democracy, hence the rising rate of unemployment, especially among the youths.

Delivering a lecture recently in Lagos, titled: Nigeria, A Country of Many Nations: A Quest for National Integration, President of African Development Bank (AfDB), Dr. Akinwumi Adesina lamented the high rate of joblessness among Nigerians, saying about 40 per cent of youths were unemployed.

While noting that the youths were discouraged, angry and restless, as they look at a future that does not give they hope, he, however, said all hope was not lost as youths have a vital role to play, if the country should arrive at its destined destination.

As part of its contributions toward solving the problem of unemployment in Nigeria, the Central Bank of Nigeria (CBN) has over the years rolled out programs and policies that would support job creation and poverty eradication.

It is on record that CBN has apart from its core mandate of ensuring monetary and financial system stability, promoting a sound financial system; and acting as a Banker of last resort, rolled out policy programs that have to a large extent supported the nation’s economic growth and development.

These programs, which cut across various sectors of the economy, including agriculture, power, youth and sports development, the creative sector, and education, have recorded tremendous success, helping to buoy the economy above the murky waters of recession and poor growth.

Also, the programs have in no small measure created jobs for millions of Nigerians, especially the youths both in the rural and urban areas.

These interventions are aimed at diversifying the economy, creating employment opportunities, tapping into areas where Nigeria has a comparative advantage for the production of various farm produce like rice, cassava, palm oil, cotton, tomato in commercial quantity; and even the information technology and creative sectors for economic growth and productivity.

Its major intervention in the agricultural sector, the Anchor Borrowers’ Programme (ABP) scheme has to a large extent strengthened the sector and improved the nation’s self-sufficiency in the production of rice.

In November 2015, President Muhammadu Buhari launched the ABP to boost agricultural production and reverse Nigeria’s negative balance of payments on food.

Under APB, CBN has in the last seven years disbursed N948 billion to 4,478, 381 small-holder farmers nationwide.

Interventions are part of the core functions of the CBN. It is not out of place for them to improve economic activities in the country.

Director, Corporate Communications Department of the CBN, Mr. Osita Nwanisobi, maintained that the disbursement was part of efforts to boost agricultural production, halt large volumes of food importation and address the negative trade balance.

According to him, the small-holder farmers who benefited from the scheme cultivated 5.2 million hectares of farmland across the country, thereby creating over 12.5 million direct and indirect jobs.

Nwanisobi further said that the bank, under its targeted credit facility designed to cushion the effect of the coronavirus pandemic, had disbursed N368.79 billion to 778,000 beneficiaries.

The beneficiaries, according to him, comprised 648,052 households and about 130, 000 Small and Medium Enterprises (SMEs).

“Specifically, the bank disbursed N1.452 trillion to 337 large real sector projects in agriculture, manufacturing, services, and mining under Real Sector Support Facility (RSSF),” he said.

He added that the bank also disbursed N8.5 billion to six healthcare projects under the Healthcare Sector Intervention Facility (HSIF), bringing the cumulative disbursements to N116.72 billion in 124 projects, comprising 31 pharmaceuticals, 56 hospitals, and 37 health-related services.

Other efforts taken by the CBN include the creation of an N50 billion target credit facility for affected households and small and medium enterprises through the NIRSAL Microfinance Bank; the creation of an N100 billion intervention fund in loans to pharmaceutical companies and healthcare practitioners intending to expand and strengthen the capacity of our healthcare institutions; creation of a research fund, which is designed to support the development of vaccines in Nigeria.

Beyond its core functions, the CBN has, through its developmental mandate, taken major actions on all the key sectors of the Nigerian economy, and this can be gleaned from the over 40 intervention programmes all aimed at resetting and stimulating the nation’s economy.

Only recently, it an N15 trillion Infrastructure Corporation of Nigeria Plc., (Infracorp) targeted at solving the country’s infrastructure needs.

Alhaji Gbadebo Olatokunbo, a small business owner, who spoke to Daily Champion said “There had been several interventions of the CBN, too numerous to mention, that were met with heavy-hammers of critics and whenever they were proven wrong with happenings in another more developed economy, silence becomes the norm, the noise just goes unnoticed,” he said.

Commending the apex bank’s several initiatives in various sectors of the economy, he however noted regulators in developed countries of the world supported, leading to the economic growth recorded today in their economies.

According to him, interventions like the TCF have cushioned the negative effects of the pandemic on businesses in Nigeria and should be commended.

National President, Association of Micro-Entrepreneurs, Prince Saviour Iche who commended the CBN’s several interventions in the economy; called on the regulatory authorities to do more in supporting Nigerians who are in dire need of funds to run their businesses.

According to him, the economy of Nigeria will only have a positive impact when the real steps are taken towards effective and sincere support, adding that the CBN is doing well in supporting SMEs in Nigeria.

The CBN Governor, Mr. Godwin Emefiele had maintained that the focus of the Bank remains macroeconomic stability, to build a strong, stable, and resilient economy that is self-sustaining and able to weather unanticipated shocks.

He said, the Act establishing the Bank envisaged the role of development finance, which he stressed the Nigerian context demands.

According to him, the philosophy behind central banks’ interventions in the real economy is to indirectly influence the cost of production for firms and affect prices positively by improving the flow of credit.

Comments are closed.