By Daniel Edu
The Central Bank of Nigeria (CBN) has provided a total of N5.6 trillion in soft loans to the power, manufacturing, and aviation sectors over a span of three years. These loans were granted in light of the ongoing challenges faced by these critical sectors of the Nigerian economy.
The CBN’s lending activities to these sectors were revealed through the CBN’s financial statements and records between the years 2020 and 2022. Notably, these loans were extended at single-digit interest rates and offered extended repayment periods.
The data breakdown indicates the following:
– In the power and aviation sector, CBN’s receivables and assets declined from N1.39 trillion in 2021 to N50.6 billion in 2022, a significant drop of 96.4%. Additionally, the sector reported N935 billion in loans from CBN in 2020.
– In the manufacturing sector, CBN’s support increased by 33.46% from N919.03 billion in 2021 to N1.23 trillion in 2022. Similarly, the sector received N1.07 trillion in loans from CBN in 2020.
The Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, expressed the association’s efforts to secure credit facilities from the CBN. However, the association did not receive any feedback despite repeated attempts to collaborate and communicate with the bank. Ajayi-Kadir emphasized that the association comprises coordinated manufacturers, and it is seeking to understand the specifics of which manufacturers the CBN is supporting.
It is notable that these lending activities occurred under the leadership of the CBN’s suspended governor, Mr. Godwin Emefiele. The loans were part of the CBN’s strategy to support and stimulate key sectors of the Nigerian economy facing challenges.
