The Central Bank of Nigeria (CBN) has disbursed N204.3 billion of its Targeted Credit Facility (TCF) since February 12, 2021.
The apex bank did the disbursement through the NIRSAL (Nigeria Incentive-Based Risk Sharing System for Agricultural Lending) Microfinance Bank as part of the apex bank’s measures aimed at cushioning the effects of the COVID-19 pandemic on businesses and households.
This was disclosed on Saturday by the Director, Development Finance Department, CBN, Mr. Phillip Yusuf Yila, at the 30th seminar for finance correspondents and Business Editors, which held virtually.
According to a breakdown of disbursements under the facility, Yila disclosed that 389,449 applicants applied and received loans, amounting to N137.3billion under the Household/Employee component of the TCF, while 58,229 Small and Medium Enterprises (SMEs) applied and got loans amounting to N67.04billion.
This implies that a total of N204.3 billion has been disbursed from the facility.
He also revealed that a total of N111.6billion had so far been disbursed to 28,961 beneficiaries under the CBN’s Agribusiness Small and Medium Enterprise Investment Scheme (AgSMEIS) while a total of 320 beneficiaries have received N3.1billion under the Creative Industry Financing Initiative (CIFI).
The CBN Governor, Mr Godwin Emefiele, while delivering his opening remarks through a representative in the person of the Deputy Governor, Corporate Services Directorate, Mr. Edward Adamu, stated that the apex bank decided to double the TCF to about N300 billion, “in order to accommodate many more beneficiaries and boost consumer expenditure, which should positively stimulate the economy”.
Emefiele said: “In line with the growing need to go digital, the application process is done online and requires limited paperwork from prospective applicants.’
Speaking on the CBN’s recent decision on cryptocurrency, Emefiele said: “The CBN did not place any new restrictions on the use of cryptocurrency in Nigeria.’
“Our recent directive only amplified an earlier regulation on the subject of cryptocurrency.
“The recent directive became necessary to protect the financial system and the generality of Nigerians from the risks inherent in crypto asset transactions, which have escalated in recent times, with consequences on financial stability and implementation of monetary policy.”
In taking the decision, he stated that the CBN’s policy stand “does not preclude Nigerians from harnessing the benefits of the underlying technology that support crypto transactions, which is a distributed ledger, commonly referred to as blockchain.”
The governor said: “There are several examples where blockchain technology has been used to facilitate and improve transparency in the settlement of trade transactions.”
As the pace of technological adoption increases, Emefiele said Nigeria “must find ways to leverage digital channels in improving access to finance and access to credit for all Nigerians.”
