CBN Reads Riot Act To Banks Over Intervention Funds

CBN Reads Riot Act To Banks Over Intervention Funds

The Governor, Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has warned Participating Financial Institutions (PFIs) in the country against charging double-digit interest on intervention funds guaranteed by the apex bank.

Mr. Emefiele who gave the warning in Abeokuta, Ogun state, during an interaction between the Presidential Task Force on Agricultural Commodities and Production and young farmers at the Owowo Model Farm Estate, assured the young farmers of the Bank’s funding support through their respective PFIs, and asked them to report any bank that charges them above 9 per cent interest on loans guaranteed by the CBN.

He also assured them that Development Finance Officers from the Bank were readily available to assist them on how to access credit from the various intervention funds in order to guarantee employment, create wealth and meet the country’s food needs.

He therefore urged the young farmers to take advantage of the Bank’s Youth Entrepreneurship Development Programme (YEDP) as well as the Micro, Small and Medium Enterprises Development Fund (MSMEDF) to create wealth.

Years after the launch of the N220 billion Micro, Small and Medium Enterprises Development Fund(MSMEDF), the CBN has said only about  36  per cent of the fund has so far been accessed.

According to the CBN governor, less than N80 billion of the N220 billion has been assessed.  Expressing his concern over the trend, Emefiele urged farmers in the country to take advantage of the various agricultural intervention funds of the Bank to boost the agricultural sector.

He assured that the CBN was ready to ensure their disbursement through participating financial institutions at single digit interest rate, warning that any bank found charging above the stipulated rate would be dealt with.

Also speaking, the Minister of Agriculture and Rural Development, Chief Audu Ogbeh assured the youth of Federal Government support in their quest to make legitimate earnings from agriculture.

Ogbeh, who frowned at the spate of importation of goods that can be easily produced in Nigeria, expressed confidence in the ability of the youth to produce agricultural commodities that will earn the country the much-needed foreign exchange.

He also commended the effort of the CBN Governor, who he noted was very concerned about the import bills of the country, particularly as it had to do with rice importation.