The new lending policy by the Central Bank of Nigeria (CBN) to increase Deposit Money Banks (DMBs)’s fundings to the real sector of the economy has started to yield fruits as manufacturers have so far obtained a total of N459.69 billion for a period of five months.
In a phone interview with CNBC Africa, the President of the Manufacturers Association of Nigeria (MAN), Mr Mansur Ahmed, disclosed that from May to October 2019, the real sector has received a total of N459.69 billion as credit facilities from banks for business.
The CBN had increased the deposit ratio from 60 to 65 per cent – a policy that will attract sanctions if not complied with.
The strategy which was projected to grow the real sector of the Nigerian economy is now following through as the National Bureau of Statistics (NBS) noted recently that within this period, the manufacturing sector grew by 1.10% in Q3 2019.
“It’s true. The recent intervention of the CBN has indeed helped to direct more credit to the sector. Perhaps that is already reflected in the improvement in the growth rate of the manufacturing sector which has gone up to about 1.10% from something like –0.12% in the previous quarter,” an excerpt of the interview with Mansour said.
He advised that the CBN and the DMBs to continue to maintain the statuesque so as to continue to provide strong support for businesses in the real sector, especially small scale businesses.
See the full interview with CNBC here