The Central Bank of Nigeria (CBN) has promised manufacturers single-digit loans with a maximum interest rate of 9%.
The CBN Governor, Godwin Emefiele, announced this at the Nigeria International Partnership Forum in Paris, France.
The CBN Governor stated that the central bank’s policy is focused toward growing exports while decreasing imports, as well as promoting ways for Nigeria to generate more of what it now imports.
“We want to ensure that the manufacturing sector can access capital at a single-digit rate of not more than nine percent.
“It should be easy for you (investors in manufacturing) to access credit at single digit with two years moratorium.”
Emefiele, who reiterated the government’s determination to discontinue petroleum subsidy payments, also noted that the country’s economy is on the mend thanks to a resurgence in crude oil prices.
“Aliko Dangote’s $17.5 billion refinery will produce 650,000 bpd and my brother Abdulsamad Rabiu (BUA), 350,000 bpd. We believe prices of petrol can be more competitive and affordable and we will soon be exiting fuel subsidy.”
“What remains our focus? The mantra has been why should we be importing what we can produce? We are encouraging industries, we are making plans on granting of credit to these industries,” he added.
The CBN governor also pointed out that,
”inflation rate has dropped from over 18% to 14.1%.”
He added that as we see a further rebound in crude prices, the rate might still drop.
In an effort to increase foreign investments in the economy, the Central Bank of Nigeria (CBN) told global investors that Nigeria is ready for business.
According to the information contained in a letter by the CBN Governor titled “Turning the Covid-19 tragedy into a new opportunity for Nigeria,” the CBN set aside an initial intervention fund of N500 billion over the medium term for manufacturers to procure state of the art machinery and equipment and automated manufacturing models that will fast track local production and support increased patronage of locally made products.