LCCI, MAN praise CBN’s bailout funds for economic recovery

Manufacturers have praised efforts of the Central Bank of Nigeria (CBN) on planned disbursement of N93.2 billion out of N1 trillion intervention fund targeted at manufacturing and agribusiness sectors for economic recovery, post COVID-19.

Dr Muda Yusuf, Director-General, Lagos Chamber of Commerce and Industry (LCCI), in an interview with our reporter in Lagos on Thursday, welcomed the development.

Yusuf commended the spirited efforts of the CBN in the promotion of development finance.

He, however, stated that many businesses had reported cases of inability to access the loan facilities to the chamber.

He implored CBN to undertake periodic impact assessment of the fund and publish the status of implementation, disbursements, number of beneficiaries and general impact of the funds.

“Finance is critical to the strengthening of the real sector of the economy.

“Funding is necessary but not sufficient condition to transform manufacturing, agriculture and mining sectors.

“We need more active interventions from regulatory agencies, the Nigerian Customs Service, better power delivery from the electricity sector, better transport logistics, seamless cargo clearing processes and an investment friendly bureaucracy.

“These complementary actions are desirable and important to achieve the desired outcomes of a truly diversified economy.

“We also implore the commercial banks to take a cue from the CBN in the promotion of economic development goals,” he said.

Also, Mr Ambrose Oruche, Director-General Manufacturers Association of Nigeria (MAN) stated that the plan was a prerequisite for, and very critical to, economic growth and recovery post COVID-19.

Oruche reiterated that the manufacturing and agriculture sectors being large drivers of employment, industrialisation and economic growth, needed adequate monetary policy intervention.

“The disbursement is in line with Federal Government’s agenda to keep exploring options with the private sector to fund investments in infrastructure.

“This is expected to aid employment generation, support production and boost output growth and so is a very welcome development,” he said.

Mr Godwin Emefiele, Governor of CBN at the CBN Monetary Policy Committee Meeting last week, disclosed that N93.2 billion out of the N1 trillion would be disbursed as intervention.

The Apex bank boss the areas for intervention as agriculture and manufacturing firms, under the real sector support fund, to boost local manufacturing and production across critical sectors.