Business
Emefiele Harps On Lessons Of COVID-19 To Grow Economy
The Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele has restated the Federal Government’s commitment towards turning the lessons of CoVID-19 into strong learning points that would help the country grow its economy .
Speaking on the topic: Turning COVID-19 Tragedy into an Opportunity for a New Nigeria in Abuja, Emefiele said there was no need for Nigerians to despair but to rather use it as a spring board to move the country forward.
“For a country of over 200 million people and projected to be about 450 million in a few decades, we can no longer ignore repeated warnings about the dangers that lie ahead if we do not begin to depend largely on what we produce locally, because the security and well-being of our nation is contingent on building a well-diversified and inclusive productive economy.”
He noted that as at June 2014, Nigeria was spending about N1.3 trillion importing rice, fish, wheat and sugar raising questions as to why the country cannot grow these products locally despite its abundant natural resources.
He also recalled that only a few decades ago, Nigeria was one of the world’s largest producers and exporters of palm oil, cocoa and groundnuts.
He lamented that, today Nigeria imports nearly 600,000 metric tonnes of palm oil, whilst Indonesia and Malaysia, two countries that were far behind Nigeria in this crop, now combine to export over 90 percent of global demand, adding that in 2017 alone, Indonesia earned $12.6 billion from its oil and gas sector and $18.4 billion from palm oil.
He stessed that the coronavirus pandemic and the immediate response of many of Nigeria’s trading partners su ggest it is now more critical than ever that the country takes back control, “not just control over our economy, but also of our destiny and our future.”
The CBN boss said that it was in line with this developement that the CBN has created several lending programmes and provided hundreds of billions to smallholder farmers and industrial processors in several key agricultural produce.
According to him, these policies are aimed at positioning Nigeria to become a self-sufficient food producer, creating millions of jobs, supplying key markets across the country and dampening the effects of exchange rate movements on local prices.
“This philosophy has been a consistent theme of the CBN’s policies over the last couple of years,” he said.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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