CBN recovers N3.7tr, another N5tr not yet due
By Jeph Ajobaju, Chief Copy Editor
A total N3.7 trillion has been recovered from N9.3 trillion loans the Central Bank of Nigeria (CBN) granted businesses but the bank says it has now slowed down its intervention programme launched to boost economic productivity.
Another N5 trillion loan is not yet due, according to CBN Development Finance Director Yusuf Yila, who disclosed in Abuja that manufacturers got 31 per cent of the total funds, the biggest chunk.
“Some of the loans are under moratorium. We have moved from agriculture to manufacturing. So far, manufacturing, agriculture, health, exports and SMEs, have benefitted from the intervention,” he explained.
Yila disclosed CBN intervention funds have been slowed down to rein in inflation.
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N400b recovered from N1 trillion ABS loans
Yila added the CBN has recovered N400 billion from N1 trillion disbursed in its Anchor Borrowers Programme (ABS), per reporting by The PUNCH.
He warned debtors to repay as the CBN has collaborated with the Economic and Financial Crimes Commission (EFCC) to set up a desk to recover loans.
“Any person who borrowed from us will pay back. We have recovered from states and we debit their FAAC [Federation Account Allocation Committee]. Every single loan taken from our development finance will be returned,” Yila said.
Buhari increases CBN loans by N2.45tr in 6 months
Despite the slowing down of CBN intervention, loans taken by the Muhammadu Buhari administration from the grew from N17.46 trillion in December 2021 to N19.91 trillion in June 2022, a rise of N2.45 trillion in six months.
Loan through CBN Ways and Means Advances is not calculated into Nigeria’s debt, which amounted to N41.60 trillion in the first quarter of the year ended March (Q1 2022), according to the Debt Management Office (DMO).
Public debt includes only the debts of the federal government, the 36 states, and the Federal Capital Territory (FCT).
Ways and Means Advances is a loan facility through which the CBN finances shortfalls in the federal budget.
Section 38 of the CBN Act 2007 says the CBN may grant temporary advances to the federal government with regard to temporary deficiency of budget revenue at such rate of interest as the bank may determine.
“The total amount of such advances outstanding shall not at any time exceed five per cent of the previous year’s actual revenue of the Federal Government,” the Act says.
“All advances shall be repaid as soon as possible and shall, in any event, be repayable by the end of the Federal Government financial year in which they are granted and if such advances remain unpaid at the end of the year, the power of the bank to grant such further advances in any subsequent year shall not be exercisable, unless the outstanding advances have been repaid.”