* Only 76 companies out of over 3000 have benefited
By Franklin Alli
” Going forward, MAN proposes ardent enforcement by the Central Bank of Nigeria (CBN) to ensure that the PFIs and DMBs grant transparent and effective access of its intervention funds to manufacturers.”
The Manufacturers Association of Nigeria(MAN), said weekend, in a press release signed by its director-general, Segun Ajayi -Kadir.
“This is especially concerning the N1trillion manufacturing and import substitution facility, the N220 billion Micro, Small and Medium Enterprises Development Fund (MSMED), the 100 billion Health Care and Pharmaceuticals Support Funds and N300 billion Real Sector Support Facility (RSSF),” he said.
He noted that out of the cumulative N1.6 trillion stimulus package being managed by Participating Financial Institutions (PFIs) which includes Commercial Banks and Development Bank, only 76 companies have received N300 billion, which translates to 30 percent, in one year.
“Generally, MAN observed through feedbacks from members and interaction with the CBN on several occasions that these facilities and funds have not been adequately accessible to manufacturers due mainly to the prevarication of the PFIs and MDBs.
” MAN, while acknowledging the excellent initiative of the CBN in setting up the N1 trillion COVID-19 stimulus facility for manufacturing and import substitution, observed that most of its members who applied were not able to get it.
” No doubt, development funds are critical to driving manufacturing investment and by extension, production. This is because the single-digit interest rate for developments fund far contrasts the more than 25% rate charged on commercial banks’ lending.
The various CBN funding windows are commendable but the poor implementation hinders the attainment of the noble objectives of these funds. Manufacturers hardly access these funds!” he said.
The Association, he said, therefore wanted the CBN to come up with specific guidelines and timelines for the effective and COMPLETE disbursement of the intervention funds.
“There should also be periodic reports of the status of implementation to the CBN to ensure progressive monitoring. Also, PFIs and DMBs who fail to diligently and timeously disburse ALL the funds allocated should be sanctioned,” he said.
CBN NAIRA 4 DOLLAR SCHEME
Regarding the recently introduced Naira 4 Dollar Scheme, by CBN, he said that there is the need to also consider where the domestic foreign exchange-earners stand within the context of this scheme.
“For instance, could a manufacturer who exports his product and repatriates his dollar profit, get his money in dollars and also benefit from the Dollar 4 Naira Scheme? This way, you can guarantee almost a 100% reinvestment in production and reap all the attendant benefits and even partly make-up for the losses incurred as a result of the poor implementation of the EEG. The average manufacturer who is confronted with a lot of infrastructure and macroeconomic challenges is eminently qualified, if not more qualified, to benefit from such a scheme.”