One of the conditions for sustainable economic growth in every economy is development funding. The provision of financial resources to diverse sectors of the economy would boost the growth of the economy, hence accelerating development and welfare in general. The Central Bank of Nigeria’s development finance initiatives include the formulation and implementation of various policies, the creation of an enabling environment for financial institutions to provide services that are effective, efficient, and sustainable, and the innovation of appropriate products. The projects are mostly geared towards the agricultural sector, rural development, and micro, small, and medium-sized businesses.
FCT
The Federal Capital Territory, Abuja, which lies strategically at the heart of Nigeria, is an attraction to many due to its warm and natural charm, beautiful landscape, interesting architecture, and colorful culture. The region is a thriving business hub where innovative Nigerians are constantly breaking barriers in information technology and MSMEs, and also leveraging global trends and government interventions to improve production and value addition of grain and tuber crops, which are the main agricultural produce of the locality.
To further support economic activities in the capital city, the Central Bank of Nigeria, financed 46,531 projects in the FCT.
Highlighted below are some of these projects.
Name: DIFF Hospital
Intervention: Health Sector Intervention Fund (HSIF)
Location: Abuja
The Central Bank of Nigeria introduced concessionary financing to the health sector in a bid to provide readily accessible and affordable medical services to Nigerians, in a bid to reduce medical tourism and mortality. Diff Medical Centre, famed for delivering quality pediatric and fertility services, is a beneficiary of the Health Sector Intervention Fund (HSIF). Prior to accessing the fund, the hospital had thirty (30) staff, four (4) inpatient rooms, a consulting room, and a theatre. Accessing the fund enabled an upgrade which led to the building of thirty-two (32) in-patient rooms, five (5) consulting suites and three (3) operating theaters. The expansion resulted in an increase in the number of medical services offered, including obstetrics and gynecological services, comprehensive medical and surgical services, pediatrics services, assisted conception unit, eye clinic, dental services, and neurological services. Earning it the reputation of being the best reproductive health centre in the FCT.
Name of Project: KAS Service Limited
Intervention: Real Sector Support Facility (RSSF/DCRR)
Location: Abuja
The Central Bank of Nigeria (CBN) established the RSSF/DCRR to improve finance to the real sector of the economy, increase output, create jobs, diversify the economy, expand access to foreign reserves, and provide inputs for the industrial sector.
KAS Limited, one of the leading printing companies in Abuja, accessed funding under the RSSF. The funding enabled the purchase of cutting-edge digital printing equipment and the employment of 116 permanent staff, which has helped the company attract high profile clientele. It also enabled the establishment of KAS print 1 and KAS print 2 program hubs, where interested individuals are trained and exposed to contemporary printing techniques. Currently, there are 202 and 192 interns in the company’s Abuja and Lagos offices respectively.
Accessing the fund contributed to the success of the business, and KAS Limited has experienced a steady rise in revenue.
Name: Fays Agro Allied Mechanized Farms
Intervention: Commercial Agricultural Credit Scheme (CACS)
Location: Abuja
Fays Agro Allied Mechanized Farms is engaged in poultry and fish farming. The farm accessed funding under the CACS, which enabled the purchase of 2,400 bags of 6mm feeds, 1,275 bags of 4mm feeds, 50,000 Poultry birds, and the installation of 5 pen houses.
The company currently has 30 staff in its employ, 9 modules of 8 ponds each, with the ability to raise 4,000 fishes to table size, while the construction of 5 additional layer pans each measuring 94m by 10m is in progress in the poultry farm.
Name: Anthony Nwabunna
Intervention: Targeted Credit Facility (TCF) Location: FCT Abuja
The COVID-19 pandemic caused unprecedented disruptions to global supply chains, a sharp drop in global crude oil prices, turmoil in global stock and financial markets, massive cancellation of sporting and entertainment events, and intercontinental travel bans/restrictions around the world.
These results have had serious effects on people’s lives and corporate activities due to falling global demand, consumer confidence and output. To cushion the effects of the pandemic, the CBN introduced the Targeted Credit Facility (TCF) as a stimulus package to help families and MSMEs affected by the COVID-19 outbreak.
Anthony Nwabunna, the owner of Time Out Restaurant, nursed the ambition to expand his restaurant for a long time. He realized this dream when he accessed the Targeted Credit Facility (TCF) from the Central Bank of Nigeria (CBN).
Currently, he has three staff that manage operations at the restaurant.
Name of Beneficiary: Chioma Stephanie Intervention: AGSMEIS
Location: FCT, Abuja
Chioma Stephanie has been involved in the manufacturing of fiber pillows, the sewing of bedsheets and duvets, and the production of foot mats. She had her sight set on growing her company and being a beneficiary of the AGSMEIS intervention provided her the opportunity to do so. A significant portion of the funds accessed was used to purchase machines, including a generator, eight industrial sewing machines and a fiber blower, capable of producing 4,000 pillows daily.
Chioma’s company has experienced an increase in revenue, and her loan repayments have been on schedule.
EBONYI
Ebonyi State is located in south-east Nigeria. It is one of the country’s leading producers of food crops such as rice, yam, potatoes, maize, beans, and cassava. The state has offered many incentives to agro-allied investors in order to increase output. Abundant natural resources in the state include lead, oil, and gas and the Okposi and Uburu Salt Lakes, which are the country’s greatest salt resources.
To encourage agricultural activities, mining and other economic activities within the state, the Central Bank of Nigeria provided concessionary funding to approximately 34,011 businesses in Ebonyi state.
Name: King David University of Medical Sciences I
Ntervention: Health Sector Intervention Facility (HSIF)
State: Ebonyi
King David University of Medical Sciences was established from a desire to meet a critical demand for medical education in Nigeria and the larger West African region. The University’s principal mission is to provide the best possible educational setting for students to achieve the highest levels of professionalism, ethics, and competency in the health sciences.
Through the Central Bank of Nigeria’s HSIF intervention, the Ebonyi State Government accessed funding for its medical science educational project. With the funds, the University was able to upgrade its pharmaceutical, biology, and chemistry facilities. The University also purchased equipment, ambulances and built standard laboratories and medical and surgical wards.
More than 500 new jobs were created as a result of the establishment of the facility. The university is up to date with their loan repayment.
Name: Agbafor Happiness Ogo Intervention: AGSMEIS
Project: Poultry And Fishery State: Ebonyi State Agbor Happiness Ogo accessed the AGSMEIS fund for the purpose of expanding her poultry and fish farm. Happiness was able to construct a borehole, chicken cages for layers and a fishpond at her farm, courtesy of the facility from CBN. She currently has 1,050 birds and 4,000 fish in the pond. She also has four (4) staff working on the farm.
The funds she accessed has assisted her in creating a stable income flow.
Name: Olughu Victor Agwu Intervention: AGSMEIS
Project Type: Fishery State: Ebonyi
Olughu Victor Agwu accessed the AGSMEIS loan which he deployed to hire four new staff, build a two-bedroom farm home, dig seven ponds large enough to hold 25,000 fishes, and drill a borehole. Mr. Agwu has commenced loan repayment. Thanks to the Scheme, he been able to enhance his source of income.
Name: Ebonyi State Government Intervention: CACS
Purpose: Rice Milling Location: Ebonyi State The Commercial Agricultural Credit Scheme (CACS) was introduced to speed up the growth of the agricultural sector of the Nigerian economy by giving credit to commercial agricultural businesses at a single-digit interest rate. It was also to improve national food security by increasing food supply and lowering the prices of agricultural products and produce, increase output, create jobs, diversify sources of income, and increase forex reserve. The Ebonyi State Government made good use of the opportunity presented by the intervention.
To ensure food security and encourage value addition to agricultural produce, the government of Ebonyi State established rice milling plants in Iboko, Izzi, Ikwo, Oso-Eda and Afikpo South LGA, with funds accessed from the CACS facility.
The loan facility was utilized to purchase an automatic bagging machine, de- stoners, paddy cleaners, paddy separators, huskers, two sets of whitening machines, two sets of polishing machines, two sets of length graters, two sets of color separators, a 500KVA power generator for the processing units, and two sets of 250KVA power generators for the boiling units.
Each milling machine processes five tons of rice per hour, and forty tons per day. There are currently 360 employees at the three milling factories, who work in two (2) shifts per day. The mill is expected to generate significant profit and repayments are made on schedule.
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