The Central Bank of Nigeria (CBN) has provided soft loans amounting to N5.6 trillion (about $13.7 billion) to the power, manufacturing, and aviation sectors over the course of three years, according to information gathered by The Findwhosabi.
The loans were extended to these sectors in the face of various challenges that these key sectors of the Nigerian economy have been encountering. The CBN’s loans to these sectors were given at relatively low-interest rates and with long repayment tenures.
The breakdown of the loans indicated that the power and aviation sector received N50.6 billion in 2022, which was a significant decline from the N1.39 trillion in 2021. In the same sector, N935 billion was reported in 2020.
For the manufacturing sector, N1.23 trillion was reported in 2022, marking a 33.46% increase from N919.03 billion in 2021. The concentration in the manufacturing sector was N1.07 trillion in 2020.
The CBN’s total receivables and other assets stood at N47.39 trillion in 2022, compared to N43.18 trillion in 2021. Receivables from the Federal Government were a significant part of this figure.
The Manufacturers Association of Nigeria has expressed concern over the lack of clarity on which manufacturers have been supported by the CBN. The association has reportedly attempted to secure credit facilities from the central bank but hasn’t received any feedback regarding its requests.
These loans highlight the CBN’s efforts to support and stimulate key sectors of the Nigerian economy in the face of challenges and contribute to economic growth and stability.