Oil revenue fell from $3.2 billion to less than $500m Churns out palliatives
The Central Bank of Nigeria (CBN) on
Saturday in Enugu assured Nigerians that the country would be out of the
current economic recession soon, while also urging Nigerians to take
advantage of the numerous policies, initiatives and programmes packaged
by the bank to cushion the effects of the biting economic recession in
the country.
Speaking at the bank’s fair organised
for small and medium scale enterprises, artisan, farmers, banks,
hairdressers, barbers, shoemakers and other business groups in Enugu,
the Acting Director, Corporate Communications of CBN, Isaac Okoroafor
said the bank was aware of the prevailing economic condition in the
country and added that the situation would not last long.
“Though we are in trouble, it is just
for a while. As fast as we can, let us re-adjust ourselves so we can get
out of the present situation. First of all, what is recession?
Recession simply put, is a period of dwindling economic realities.
Incomes are falling and government’s revenue is dwindling. Unemployment
is increasing because businesses are not the way they should be. They
sack workers because income is shrinking.
“People are not spending especially in
our case, because oil prices have collapsed and foreign exchange
receipts have dried up; falling from $3.2 billion to less than $500
million a month. With this kind of situation, Nigerians should try to
adjust themselves. This is the real change. We need to change our ways
to the realization of a new troubling situation which is that it is no
longer business as usual. Nigerians should learn how to save the little
they have, so they can use it over time.
“Nigerians should begin to eat what we
produce and not to look for expensive dollars to import food. We should
go back to corn, yam and made in Nigeria Rice. Let us produce toothpick
and not import it from China. We should not import 20 million eggs from
South Africa. We should stop importing chicken when we have them here.
Nigeria should brace up. This is not 100 metre marathon. Let us brace up
and change our ways. The most hit now are people who have refused to
realise that we ought to eat what we produce,” he said.
On the policies packaged by the bank
with capacity to cushion the effects of the economic challenge,
Okoroafor said 60% of MSME development fund was meant for women and
women owned enterprises noting that some have collected as much as N1
billion and N2 billion and they retail to registered co-operative
members in those states in bits. Some states elected to pay the interest
which is not more than 9% on behalf of the beneficiaries. That is a lot
of guarantee and some are recording huge successes. We also have the
commercial Agric Credit Scheme (CACS) for larger commercial farmers. We
are for everybody.
“One of the greatest highlights this
time is the youth entrepreneurship programme and that programme is for
corps members who are either in service or have finished service in the
last 5 years.
“This is how it works. If you are a
serving corps member and you want to get into business, you can get as
much as N3 million to start as an entrepreneur. What happens is that you
are not required to provide any collateral because we discovered that
collateral is the problem. Your degree or HND certificate will serve as
your collateral because we know it is an asset in which you have made
investment. So just surrender it and that is all.
“If you have finished up to 5 years ago,
you can submit your NYSC and Degree or HND certificate and then you can
take a loan. But before you do that, you have to make us a proposal.
Let us know the kind of business you are doing. If we feel it is
feasible, we invite and train you for 3 days and make you understand the
intricacies of the business and to put your plan very well. After which
we link you up with a bank. That is what we do,” he said.
The bank cited its N220 billion fund
made available for Micro, Small and Medium Enterprises (MSME), which it
said could be easily accessed.
On other policies already introduced by
the bank to help stabilise the nation’s economy, Okoroafor said the
decision of the bank to release a list of 41 items that Nigerians should
stop importing to the country was borne out of a genuine desire to take
the nation’s economy to the next level.
“Look at rice for instance, 28 out of 36 states in Nigeria can produce rice and so, we have launched a programme on rice called Anchor Borrowers Programme. It is not just on rice but also on tomatoes palm produce etc.
“Look at rice for instance, 28 out of 36 states in Nigeria can produce rice and so, we have launched a programme on rice called Anchor Borrowers Programme. It is not just on rice but also on tomatoes palm produce etc.
“What we are saying is this: Come to us
with your proposal. If you cannot stand alone with your collateral, form
yourselves into cooperative and we are ready to work with you and state
governments like we are working with Kebbi which is giving Nigeria 1
million tons of rice this year and remember this year, the Nation needs
6.1 million tons.
“If Kebbi State at its pilot stage can
give us 1 million tons, Ebonyi is involved, Anambra, Cross-river, Benue,
Zamfara and so on. They are all showing interest. If our farmers can be
given finance like we have done to Kebbi State, Nigeria should be
expecting rice in two years’ time,” he said.
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