• Monday, April 22, 2024
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CBN introduces 11 intervention schemes for non-interest financial institutions

Here’s what CBN can do to avert imminent Covid-19 induced recession

To increase access to finance by Non-interest Financial Institutions (NIFI) and promote financial inclusion, the Central Bank of Nigeria has introduced eleven intervention schemes to carter for NIFI.

The central bank made this announcement in a circular that was sent to all non-interest financial institution on July 21 2020.

“The Central Bank of Nigeria in its efforts to increase access to finance by NIFI introduced the following intervention schemes to carter for NIFI,” the apex bank said in a circular signed by Kevin Amugo, Director, Financial Policy and regulation department.

Meanwhile, a NIFI is either a bank or other financial institution (OFI) under the purview of the CBN, which transacts banking business, engages in trading, investment and commercial activities as well as the provision of financial products and services in accordance with Shariah principles and rules of Islamic commercial jurisprudence.

Analysis of the CBN circular revealed that accelerated agricultural development scheme (AADS) was top on the list of the bank’s interventions.

According to the apex bank, the objective of the AADS is to engage a minimum of 370,000 youths in agricultural production across the country over the next three years to reduce unemployment among the youths in the country.

The scheme according to CBN is open to Nigerian youths within the ages of 18 to 35 years.

The Agri-business, Small and Medium Enterprise Investment Scheme (AGSMEIS), an initiative of the Bankers’ Committee established at its 331st Meeting held in 2017, was another scheme that made the CBN list.

“The Scheme supports government’s policy measures and efforts for the promotion of agricultural businesses, micro, small and medium enterprises ( MSMES) as vehicles for sustainable economic development and employment generation,” the apex bank said.

Intervention in the textile sector was also another scheme that was listed in the CBN circular. According to the apex bank, its effort to resuscitate the textile industry pushed it to put in place an N50 billion special mechanism for a restructuring of existing facilities and provision of further facilities for textile companies with a genuine need for intervention.

“This was the result of the meetings between the Governor and owners of textile mills in Nigeria on August 7, and September 29, 2015. Among the resolutions reached were that the Textile Mills articulate the status of their BOI CTG Loans stating their outstanding loan balances, tenure, interest rate, interest payment and the assistance being sought from CBN,” the regulator said.

Other schemes that made the CBN intervention list include Anchor Borrowers’ Programme, real sector support facility (RSSF) through CRR, credit support for the health sector, implementation of the creative industry financing initiative ( noninterest version).