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CBN boosts economy with N14.7tn

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The Central Bank of Nigeria (CBN) said it had distributed N14.7 trillion total credit to the economy as at June 30th, 2015.

Out of this amount, N760.8 billion representing 5% was contributed by collective Development Financial Institutions (DFIs), in the country.

The CBN Governor, Mr. Godwin Emefiele revealed this in Abuja on Tuesday while presenting the keynote address at the maiden edition of the bi-annual forum for stakeholders of DFIs.

Emefiele, who was represented by Deputy Governor (Financial System Stability), Dr. Okwu Joseph Nnanna, revealed that given the limitation of the resources available at the disposal of DFIs, “government was considering a plan that would make it possible for DFIs to access the capital market for fund to finance critical sectors of the economy.

Read also: CBN compels banks to refund N6.2bn ‘stolen’ from customers

According to Emefiele, “the Nigerian experience has shown that government resources have been the main source of long term fund for these institutions, which is not sustainable. It is therefore, envisaged that with time, the DFIs would be capable of accessing the capital market for funds to finance the critical sectors of the economy.”

While lamenting the sub-optimal performance of the DFIs in the area of granting of credit facilities to real sector, the CBN governor urged DFI executives to adopt a paradigm shift in their funding model for the institutions to make meaningful economic impact.

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