WED, APRIL 15 2020-theG&BJournal- The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele has disclosed that the apex will consider an initial intervention of N500 billion over the medium term, specifically targeted at manufacturing firms.
He said the funding (outlined as Medium-Term Policy Priorities (0 -3 Years) will be for the firms to procure state-of-the-art machinery and equipment and automated manufacturing models that would fast-track local production and economic rejuvenation, as well as support increased patronage of locally processed products such as cement, steel, iron rods, and doors, amongst several other products.
‘’The recent private sector investments in cement production using enhanced technology and automated manufacturing models is a good example of the kind of economic renewal we will be pursuing in this phase. We will develop a thorough screening process and stringent criteria for equipment types that would qualify for funding under this phase,’’ said in an op-ed he wrote Wednesday. (published by theG&BJournal also)
According to the CBN Governor, in manufacturing, Nigeria’s gross fixed capital formation is currently estimated at N24.55 trillion made up residential and non-residential properties, machinery and equipment, transport equipment, land improvement, research and development, and breeding stocks. Of this estimated value, machinery and equipment, which are the main inputs into economic production, are currently valued at only N2.61 trillion.
‘’In order to pursue a substantial economic renewal, including replacement of at least 25 percent of the existing machinery and equipment for enhanced local production, we estimate at least N662 billion worth of investments to acquire hi-tech machinery and equipment.’’
Emefiele also hinted that the apex bank will pursue the creation of a fund that will target housing construction for developers that provide evidence of profiled off-takers with financial capacity to repay.
He said, the current identification framework in the banking sector using the bank verification number (BVN) will be used to verify the information provided by the off-takers before the developer can access the funds.
According to him, the bank will be considering ways to assist the Mortgage Finance Sub-sector as well as build capacity at the State levels for their land administration agencies to process and issue land titles promptly, implement investment friendly foreclosure laws and reduce the cost of land documentation, as this has remained a major inhibiting factor in the provision of affordable housing in the country.
‘’Over the next 3 years, we will also support the financing of environmentally friendly energy production, as this has a tangential long-term health benefits. We will look at efforts to drive innovation and research in every sector, through our universities, research institutions, creative industry initiatives, and all other media of novelty and inventions.’’
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