N1.5trn CBN Intervention Fund Creates 6.17m Jobs | Independent Newspapers Limited
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Business, Money Market

N1.5trn CBN Intervention Fund Creates 6.17m Jobs

Posted: Mar 31, 2016 at 3:00 am   /   by   /   comments (0)


Bamidele Ogunwusi, Lagos



The combined impact of the Agricultural Credit Guarantee Scheme Fund (ACGSF) flagged-off in April 1978 and the Commercial Agriculture Credit Scheme (CACS) established in 2009, have led to the creation of 6,178,132 jobs in the Nigerian economy.


This is according to data from the Central Bank of Nigeria (CBN).


According to the data, a breakdown of the figure showed that the CBN had set up eight intervention funds totalling N1.57 trillion, from which economic operators accessed N819.164 billion to resuscitate their businesses that helped to sustain some sectors.


In 2009 however, the bank, through its CACS set up N200 billion intervention fund. As of today, a total of N337.635 billion was disbursed and a total of N137.804 has been repaid.


The fund financed a total of 423 projects and generated a total of 1,132, 232 jobs while saving the investors interest payment of N42.564 billion. The data further showed that CBN’s ACGS set up in 1978 with N3 million as seed money had disbursed a total of N97.014 billion out of which N67.014 billion was repaid. The intervention granted loan facility of 1,009,180 and has so far generated a total of 5,045,900 jobs.


The CBN evaluation data showed that the Small, Medium Enterprise Credit Guarantee Scheme set up by the apex bank in 2010 had as its seed money the sum of N300 billion. So far, N4.219 billion has been disbursed while 2.439 billion has been repaid. The intervention fund financed 87 projects.


It also showed that the apex bank set up in 2014 the RSSF facility of N300 billion, out of which N3.5 billion has been disbursed for a single project  .Also in 2010, the apex bank set up the Power and Aviation Intervention Fund of N300 billion. So far, a total of N255 billion has been disbursed and N69.755 billion repaid. The fund has financed 56 projects. The bank, they said, has three other funding for which about N450 billion was set aside and several projects have benefited from the intervention funding.


This is coming on the heels when the CBN has solicited the support of all Deposit Money Banks (DMBs) in Nigeria, to create at least one million employment opportunities for young graduates in 2016.


The job creation initiative, according to the apex bank, will be in form of support from CBN, Nigerian banks and development institutions in terms of giving out cheap and concessionary loans to companies that are in the Micro Small and Medium Enterprises (MSMEs).


Meanwhile, the Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, wants Managing Directors of banks and directors of various departments to design appropriate ways to accomplish this and to stop believing that young graduates will take loans without paying back.


He said the Bank of Industry (BoI) has already designed commendable schemes where original university and NYSC certificates as well as biometric data of young graduates are in place of collateral.


“There are no more jobs out there. Let’s give them a chance. I believe we can do this,” he urged.