The manufacturing sector has emerged leading beneficiaries in the first tranche disbursement of the Central Bank of Nigeria (CBN) 100-for-100 Policy on Production and Productivity (PPP).
Vanguard’s findings from CBN’s data reveal the sector received a total of N15.97 billion representing 68.8 percent of the N23.2 billion disbursed by the apex bank so far.
The 100-for-100 PPP is one of the apex bank’s interventions designed to fast track productive activities in priority sectors of the economy.
The Manufacturers Association of Nigeria (MAN) and Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) said that the policy will go a long way in boosting the production capacity of the real sector.
However, the Centre for the Promotion of Private Enterprise (CPPE), an economic and business advocacy think tank, believe that it is not significantly different from earlier real sector intervention funds.
The disbursement details show that funds were disbursed to 28 beneficiaries in the first tranche of the programme – 14 companies in the manufacturing sector, 12 in the agricultural sector, while the remaining two are in the healthcare sector.
Analysis of the disbursement shows that the 14 manufacturing companies received a total of N15.97 billion out of the N23.2 billion disbursed in the first tranche, representing 68.8 percent, the 12 Agric companies got N5.43 billion (23.4%) while the two companies in the healthcare sector got N1.8 billion (7.8%).
Commenting, the President of MAN, Mr. Mansur Ahmed, commended the CBN intervention, noting that while the oil economy had made little impact on the economy, the apex bank’s intervention efforts will achieve huge economic transformation.
He urged his members to take advantage of the CBN funding, adding that MAN was ready to work with the CBN and banks to make the policy a success.
“It will broaden the space of participation and increase the quality and production capacity of our members and make them more competitive in their chains of operation.”
Also reacting, Director General, NACCIMA, Ambassador Ayo Olukanni, stated: “This is a positive development which we hope will be sustained to enable the real sector get back on its feet.
“The attention to manufacturing and agric and the healthcare sectors in particular is a reflection of the priority areas of focus; which has the potential of a multiplier effect on the economy. We commend the CBN on this initiative and look forward to the next round.”
Chief Executive Officer, CPPE, Dr. Muda Yusuf, stated: “The CBN 100 for 100 programme is not significantly different from the earlier real sector intervention funds. It is essentially a question of sustaining an existing momentum of real sector financing by the CBN.
“But what is becoming increasingly evident is that while financing is necessary to boost real sector growth, it is not a sufficient condition to transform the real sector.
Foreign exchange issues need to be addressed. The challenge of insecurity needs to be more effectively tackled, structural bottlenecks need to be fixed, and investment climate issues are also very paramount.
“This reality underscores the imperative of monetary and fiscal policy complementarities. Very little progress can be made if these other factors are not reckoned with.”
