The Central Bank of Nigeria (CBN) and banks, under the aegis of the Bankers’ Committee, Thursday said they have resolved to commence the disbursement of single-digit loans to the creative industry, some targeted cash crops, as well as to intensify their support for other operators in the non-oil sector.

The amount to be disbursed to operators in these sectors was put at N200 billion.
This is just as the committee reiterated that despite the concerns about the recently held general election, the country recorded foreign portfolio inflows (FPIs) of $6 billion in the first quarter of 2019.


The Director, Banking Supervision Department, CBN, Mr. Ahmed Abdullahi, said this Thursday at a media briefing at the end of the Bankers’ Committee meeting in Lagos.

Speaking on the increased FPIs inflows, Abdullahi said: “The Bankers’ Committee noted that lending to the private sector and the economy has increased and that is very positive news. Also confidence by portfolio investors has also increased. Between January and March despite the issue of the elections, $6 billion came in and that is positive news.”

Also, the Group Managing Director/Chief Executive of Access Bank, Herbert Wigwe, while speaking to journalists, said the committee would commence disbursement of funds for the creative industry.
According to him, the committee revisited the entitle value chain of music, movies, information technology and fashion, right from production facilities to capacity building, to ensure that whatever is produced is world-class.

“At the Bankers Committee, we got the approval to take it to the next level, which is simply to do a final presentation and share it with the market and how it’s going to happen. So by next week there will be announcement for people who want to participate in each of these segments.

“The specific amount will depend on which of the strata you fall into and what you are doing. The loans are for a maximum of 10 years, they are single-digit interest rate loans and reflective of the fact that in these industries, what you require is long term financing at single-digit; while we will ask for collateral it will be flexible,” Wigwe added.

On his part, the Managing Director of the United Bank for Africa Plc (UBA), Mr. Kennedy Uzoka, who spoke on the resolutions of the committee to enhance support for the real sector said: “The committee believes that we really haven’t made so much progress in this direction and subsequent to that, the committee set up a sub-committee and the sub-committee of members are those who have operated in continents where export have done very well. We have seen some countries that have similar products and have excelled in exporting while we have dropped.

“So, the question is, what are these countries doing that we are not doing? What are those things that are challenging us as a nation to diversify our economy from the standpoint of exports?”

He further added: “We interrogated this and worked with the different agencies of government across the continent and also we came back home to check what they have and we found out that indeed we have a lot of policies, but the challenge have been execution and we narrowed this down to seven broad areas.

“Typically, finance is one of the major challenges; we have policies, logistics -our ports don’t open weekends- and in terms of the policies that drive exports, we believe that a lot of them need to be changed.”

Alluding to the fact that funding was a major challenge, he said the committee resolved to focus on crops with near-term benefits.

He added: “Fortunately, CBN has different types of funds, so we looked at the existing funds so we don’t reinvent the wheel and so we looked at which of the funding can address the current challenges. We looked at some products with viability for export, and how it would help export, address employment issues, create necessary economic activities and create relieve in terms of foreign exchange.

“That is because if we add value to a commodity, we would create employment and that would save us foreign exchange, as against what we do today that most of our products are exported in raw forms. And we believe that with a little push, we can add a lot more value.”

He said the committee agreed to immediately focus on oil palm, cocoa, sesame seed and of course shea and cashew. “Based on the meeting we had today, we are going to be lending at single-digit, up to a maximum of 10 years and we are going to devote N200 billion to support this and that would change the narrative for export.”

https://www.akelicious.net/2019/04/cbn-banks-to-disburse-n200bn-single.html

Next level interest loans...

Single digit loans could be 9.9999999%

Putting money in Nigeria's bank is also risky

With BVN, etc., there is still risk in putting money in bank

“So, the question is, what are these countries doing that we are not doing? What are those things that are challenging us as a nation...*

U asked and I will give u an insight just in case u have forgotten:

1. Tribalism
2. Religious Sentiments
3. Sectionalism
4. Corruption
5. Lack of planning
6. Selfishness/Self Centeredness
7. No Laws/Orders Obayed Upandan
8. No Transparency
9. No Accountability
10. No Free Judiciary
11. Baised Purnishment for those in Power.
12. No Plan for the future
13. No Legacies for the future generations
14. No Standard Amenities
15. Standard Tax Based Economy.
16. No Talent Hunt within
17. Lack of good maintainance policies
18. Lack of a Reward Based Economy
19. Lack of Standard/Quality in anything Nigeria except for our Cable/wire.
20. Our Mindset etc

Even if the Federal government like let them provide $10 Billion every year for subsedies, as long as they are not taking the bull by the horn, the results will continue to be the same. It's not rocket science.
One more thing, if Nigerians does not embrace the Easterners/South South and give them equal opportunities, the situation will continue to get worse. They are only trying to survive and that negative trend can only be stopped by we as a Nation if we come together as one. Any other way around will continue to get worse by the minute...think and grow rich!!!

Are they talking about AGSMIE loan In clear terms na

This is misleading and incoherent, single digit interest loan isn't specific, spell it out, what the actual pay back interest rates on the loan, and even if the interest rate was gonna be reasonable, these mofos will end up giving out this loans to family and friends, placing a bottle neck on it for common creative industry who would have used it to turn things around economically...

programm ment for the north and north alone.....

Is A Good Idea,If Only This is not a formula to loot funds

We have been hearing such good innovations from time past but just like in this narrative,implementation will be the major set back, and so die a natural death. Although I sincerely pray they get it right this time around.

Nice Idea Patobanking!

IMPLEMENTATION is the key.

Money they may never recover.

What is needed is to bring down the cost of Bank credit down to single digits. If done, there'd be no need for this

It will never get to the target. Na today

Nice Idea Patobanking!

IMPLEMENTATION is the key.

Nigerian on d right track to economy development

If they’ll pay back. develope the work force through education let build inventors out of these beautiful children.

Use Sowore’s AAC techniques it’s simple realistic les cumbersome and result oriented

Nicklaus619:
This is misleading and incoherent, single digit interest loan isn't specific, spell it out, what the actual pay back interest rates on the loan, and even if the interest rate was gonna be reasonable, these mofos will end up giving out this loans to family and friends, placing a bottle neck on it for common creative industry who would have used it to turn things around economically...

Why are we so negative in this country?

good

This na AGSMEIS

And I need 3k to travel Plz guys help o. WEMA Savings 0235308355

Let me collect 50B as a faceless man

they won't payback..... especially the musicians.they will use the money to acquire luxury for Instagram sake

sly3:

Why are we so negative in this country?

who positive don EPP for this country.the guy is making sense..they won't mind giving dangote the whole 200bil at single digit

Stevengold:
And I need 3k to travel Plz guys help o. WEMA Savings 0235308355

social media begger.

grandstar:
Money they may never recover.

What is needed is to bring down the cost of Bank credit down to single digits. If done, there'd be no need for this

didn't u read the headlines?

grandstar:
Money they may never recover.

What is needed is to bring down the cost of Bank credit down to single digits. If done, there'd be no need for this

Nigerian banks currently cannot survive at single digit that's why they have to pool funds from their profit to make single digit loans available. T-Bills trade at 13.5%, the Bank cannot lend to you at a lower rate than they lend to Govt. Thay have to statutorily meet up with Liquidity Ratio and Cash Reserve Ratio limiting the volume of deposits they can trade with. Inflation rate is at double digits. Too many factors contribute. You think you're the only one with challenges, think again. Banks have their challenges too

anyimontana:
who positive don EPP for this country.the guy is making sense..they won't mind giving dangote the whole 200bil at single digit

According to him, the committee revisited the entitle value chain of music, movies, information technology and fashion, right from production facilities to capacity building, to ensure that whatever is produced is world-class. Be positive! We're making progress.
BTW remind me how many people Dangote employs again! The man is the largest "individual" contributor to Nigeria's GDP and I don't see anything wrong with Govt supporting him. My take.

sly3:

According to him, the committee revisited the entitle value chain of music, movies, information technology and fashion, right from production facilities to capacity building, to ensure that whatever is produced is world-class. Be positive! We're making progress.
BTW remind me how many people Dangote employs again! The man is the largest "individual" contributor to Nigeria's GDP and I don't see anything wrong with Govt supporting him. My take.

if not for monopoly,where would dangote be?..always favoured by government..that's not business

grandstar:
Money they may never recover.

What is needed is to bring down the cost of Bank credit down to single digits. If done, there'd be no need for this

.
.
the interest rate is high because inflation is high.
in economics, interest rate cannot be lower than inflation, else there will be too much money in circulation which will in-turn lead to higher inflation (no one will put money into the bank when the rate is lower) . the key however is that inflation rate and interest rate must be close.
in economics, according to Philips's curve, the higher the inflation , the lower the level of unemployment.its a vicious circle,
things to do:
we need to be an exporting country not an importing country;that means we need to be productive.
cut out corruption. corruption is money got from no productivity. means more money will chase fewer goods. it will lead to inflation.
provide standard workable amenities.
on the sides, encourage tourism.

if we can do this 3 things.
it would improve our foreign exchange rate. i mean the naira to dollar could go for N1 to $1.
what this simply means is that more people would be coming into our country and more goods going out.

when it comes to developing and growing our economy,we must not slack.The Nigerian Populace must insist on a single-digit Interest Rate of 4-7% as a start-Up.why should a business man or an entrepreneur obtain a facility at 15-20%Interest Rate and you expect a profit.no wander bad loan facility everywhere,due to the hash economic climate in Nigeria.We should go and study the European Economy where loan facility is granted at 0.05%for her Citizens.indeed we have a long way to go.Those advocating that lenders of money have high rate premium on their money can't understand the Multiplier Effects of spreading funds with Cumulative effects,the more the merrier.That I'd why the peasants,Market Women are not patronising our banking system.

I am so much in support of the single digit interest loan. However, my major concern is the criterium that would used in selecting loan applicants, because 'who you know' is the order of the day in this part of the world.

Single digit as in 9%

Amuocha:
Next level interest loans...

Single digit loans could be 9.9999999%

Putting money in Nigeria's bank is also risky

With BVN, etc., there is still risk in putting money in bank

How can we compete with Chinese made and imported goods if theirs is around 3% and ours is still higher?
Powers is also cheaper there and available unlike here.
Manufacturing in Nigeria still remains a mirage.