The Director-General of the Manufacturers Association of Nigeria, Dr Segun Ajayi-Kadri, has said most of the members of the association that applied for the Ntrn COVID-19 stimulus facility set up by the Central Bank of Nigeria for manufacturing and import substitution could not access it.
Ajayi-Kadir, who said this on Thursday in a statement sent to Financial Street, identified what it called the prevarication of the participating financial institutions as the reason most manufacturers were yet to access the fund.
“According to the CBN, only 76 companies have received N300bn, which translates to 30 per cent, in one year. Intriguingly, according to our members, the banks are claiming that they have not received the framework for the administration of the facility from the CBN,” he said.
He commended the CBN’s move, and described the development funds as critical to driving manufacturing investment and production in a country.
He said, “No doubt, development funds are critical to driving manufacturing investment and by extension, production. This is because the single digit interest rate for developments fund far contrasts the more than 25 per cent rate charged on commercial banks’ lending.
“The various CBN funding windows are commendable but the poor implementation hinders the attainment of the noble objectives of these funds. Manufacturers hardly access these funds.”
Ajayi-Kadir said, “There should be ardent enforcement by the CBN to ensure that the PFIs grant transparent and effective access of its intervention funds to manufacturers.
“This is especially with respect to the N1trn manufacturing and import substitution facility, the N220bn Micro, Small and Medium Enterprises Development Fund, the 100bn Health Care and Pharmaceuticals Support Funds and N300bn Real Sector Support Facility.”
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