President Muhammadu Buhari has granted over N3 trillion in intervention funds through the Central Bank of Nigeria which has helped to generate employment and improve productivity.
The Central Bank Governor Godwin Emefiele who disclosed this, said “the intervention of central banks in development financing is not new as it dates back to the 1920s.
He said the intervention of the CBN in the real economy is to facilitate the development of financial markets through the creation of easy access to credit for investment and production.
Emefiele made this known while delivering a paper at the 40th Anniversary/Convocation lecture of Ekiti State University, Ado-Ekiti with the topic, ‘The Role of Central Banks in Managing Economic Downturns’, was represented by the CBN’s Deputy Governor in charge of Corporate Services, Mr Edward Adamu.
“Many central banks in advanced, emerging and developing economies during the recent COVID-19 pandemic supported their fiscal authorities. The aim is to aid the recovery of their economies following the significant decline in global growth occasioned by the pandemic.
“These central banks, particularly in developing countries, intervene in the real economy to enhance the transmission mechanism of monetary policy actions as well as facilitate the development of financial markets through the creation of easy access to credit for investment and production.
“It is thus undeniable that development finance interventions are frequently an integral part of the recovery strategy in most countries.’’
The CBN governor said the country’s manufacturing sector contributed less than 15% of the Gross Domestic Product (GDP) and decried the continuous importation of many commodities that Nigeria had the capacity to produce and export.
He said, “To address this challenge, we have accepted the charge of President, Muhammadu Buhari for the country to produce what it eats and eat what it produces.
“The CBN, working with Deposit Money Banks and participating financial institutions, is focused on critical areas such as the agricultural and manufacturing sectors.
