The real sector development initiatives of the Central Bank of Nigeria (CBN) were introduced to stimulate and sustain growth in key sectors of the economy, revive moribund sectors, empower the youth population, explore the untapped potential in various economic landscapes, and enhance foreign exchange inflow.
These interventions have significantly contributed to the overall growth of the Nigerian economy, as shown by available data. In response to the COVID-19 pandemic, the Central Bank of Nigeria also granted loans to households and small businesses to cushion the adverse effects of the pandemic across the country.
In recognition of the importance of access to finance as a key factor to innovation and development, the CBN’s development finance interventions are targeted at priority segments, which include the following:
1. Agriculture
2. Manufacturing
3. Infrastructure
4. HealthCare
5. Youth and Entrepreneurship Development
6. Export
7. Micro, Small and Medium Enterprises (MSMEs)
In Adamawa and Taraba states, the CBN has financed about 23,938 and 24,267 projects respectively. Below are the success stories from few beneficiaries of CBN’s interventions in both States.
ADAMAWA STATE
NAME: Sebore Diary Factory
INTERVENTION: RSSF-DCRR
SECTOR: Agriculture
LOCATION: Adamawa
Sebore Dairy Factory is a milk processing and production company established in 2022, in Mayobelwa Local Government Area, Adamawa State. The project was financed by the Central Bank of Nigeria under the Real Sector Support Facility-Differentiated Cash Reserve Requirements (RSSF-DCRR). The facility enabled the company to install an ultra-modern milk production plant with a capacity to produce 150,000 liters of milk per day. The company also offers extension services in crop production, animal husbandry and artificial insemination, all in a bid to increase agricultural output.
Apart from creating 205 direct and 376 indirect jobs, the company has also contributed to the conservation of the country’s foreign exchange, which would have been utilized in the importation of dairy products.
NAME: Yepwa Multi – Ventures Limited
INTERVENTION: CACS
SECTOR: Agriculture
LOCATION: Adamawa
Yepwa Multi – Ventures Limited is a poultry farm located in Yolde Pate, Adamawa State. The company accessed the Commercial Agriculture Credit Scheme (CACS) facility for the construction of an additional poultry house to stock birds. Since the loan was accessed, the farm increased its stock of birds from 4,500 to 20,000, which brought about a good yield in the production of eggs, thereby increasing the daily capacity from 120 to 350 crates.
Accessing the loan enabled the company to scale up its production, which has led to hiring about twenty additional staff, bringing the total staff strength of the company to fifty.
NAME: Bala Muhammed Audi
INTERVENTION: AgSMEIS
SECTOR: SMEs
LOCATION: Adamawa
Bala Muhammed Audi is an entrepreneur from Yola, Adamawa state, who ventured into rice milling, processing, production, and packaging. Mr. Audi benefited from the CBN Agribusiness Small and Medium Enterprises Investment Scheme (AgSMEIS) in 2019 to finance his business. He utilised the facility to acquire a six-in-one advanced combined milling machine, with capacity to process one ton of paddy per hour, bringing his total weekly output to thirty-five tons.
The machine has capability of de-husking, separating, whitening, and polishing of paddy. He employed five additional staff to manage the business and provides consultancy services to other farmers in his community.
Mr. Muhammed expressed his gratitude to the CBN for supporting his business, which he described as a veritable source of livelihood for him and his employees.
TARABA STATE
NAME: Alobo Jolly
INTERVENTION: AgSMEIS
SECTOR: SMEs
LOCATION: Taraba
Shalong Global Investment is a fashion designing enterprise that produces customized items such as handkerchief, boxer shorts, and designer clothes. The project is located at Jalingo, Taraba State, and managed by Alobo Jolly.
The company accessed the Agribusiness Small and Medium Enterprises Investment Scheme (AgSMEIS) loan. The facility enabled the business to procure advanced sewing machines to expand production and distribution to other states in Nigeria. Due to the increased production, seven more staff were employed to upscale the operation of the business.
NAME: Muphido Rice Milling Company Ltd
INTERVENTION: Anchor Borrowers’ Programme
SECTOR: Agriculture
LOCATION: Taraba
Muphido Rice Milling Company Ltd is located in Jalingo, Taraba State, and was established by Muhammad Madu Mustapha for the purpose of rice production, processing, and packaging. It is one of the leading producers of rice in Taraba State and has the capacity to process 30 tons of paddy per day.
The company accessed a loan through the Anchor Borrowers Programme, an intervention of the Central Bank of Nigeria with a single-digit interest rate, which was established for the purpose of boosting the agricultural sector of the economy and is designed to create an economic linkage between smallholder famers and agro-processors/anchors. The programme adopts a value chain approach that links input to production to processing and to the market.
The facility enabled the company to expand its operations and production by employing twenty additional staff, acquiring milling equipment and other inputs, which has increased its processing capacity to 80 tons of paddy per day.
NAME: Mahmud Jimada
INTERVENTION: TCF
SECTOR: SMEs
LOCATION: Taraba
Mahmud Jimada is the proprietor of Smartphones Hub, a business that is engaged in the sale of phones, laptops and accessories. The company is located at Jalingo Shopping Complex, Taraba State. During the Covid-19 pandemic, the business suffered a setback due to the lockdown. Mahmud Jimada learnt about the Targeted Credit Finance (TCF) on Twitter and applied for the facility. The loan enabled him re-stock his shop after the lockdown.
Mr. Mahmud expressed his gratitude to CBN for the support in resuscitating his business after the negative impact of the Covid-19 pandemic.
