The impact of govt intervention funds on economic development

NIGERIA’S quest for economic advancement has not gone beyond altering the structure of production and consumption patterns, diversifying the economic base and reducing dependence on oil, with the aim of putting the economy on a part of sustainable, all-inclusive and non-inflationary growth.

To realise this vision, the Central Bank of Nigeria (CBN) through the Bank of Industry (BoI) established a special intervention funds to transform the development of various sector of the economy.

Among the Federal Government’s intervention funds to the real sector are the N200 billion Small and Medium Enterprises Credit Guarantee Schemes (SMECGS), which was launched in April 2010, the fund was meant to fast-track the development of the manufacturing SME sector of the Nigerian economy by providing guarantee for credit from banks to SMEs and manufacturers.

The  Power and Airline Intervention Fund (PAIF), introduced in September 2010, was to provide the leverage that will motivate and stimulate private sector involvement in the power and aviation sectors as well as fast-track the development to both sectors of the economy.

Also, the N200 billion Restructuring and Refinancing Facility (REF) scheme was introduced to fast-track the development of the manufacturing sector of the Nigerian economy by improving access to credit by manufacturers as well as output, improve the financial position of the Deposit Money Banks (DMBs), generate employment, diversify the revenue bases and increase foreign exchange earnings.

The Commercial Agriculture Credit Guarantee Scheme (CACS) was established in 2009 to finance large ticket projects along the agricultural value chain.

Nigerian Incentive-Based Risk sharing System Agricultural Lending (NIRSAL). This scheme is  to provide farmers with affordable financial products and reduce the risks of such loans to the benefitting farmers. It was launched in 2009.

Good as these initiatives may be, the truth is that a recent survey carried out by Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has shown that only six per cent of industrialists in the country has been able to access the various intervention funds.

READ MORE…

IMAGES: www.cityofpalmer.org/ http://www.bizhallmark.com

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One thought on “The impact of govt intervention funds on economic development

  1. markwalta says:

    Pls sent me full detail of this information including author name and year

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