By Moses Nosike
OperationsÂ in the Nigerian manufacturing sector received boost as operators have commended the federal government over its recent initiative in bailing out the manufacturing sector. They spoke about the Central Bank of Nigeria (CBN) which has introduced incentives amounting to about N500billion to boost operational capacities in the real sector of the Nigerian economy.
The operators spoke through three apex organisations – the Manufacturers Association of Nigeria (MAN), Nigeria Association of Chambers ofÂ Commerce, Industry, Mines and Agriculture (NACCIMA) as well as the Nigeria Association of Small and Medium Enterprises (NASME).
Mr. Jide Mike, the director-general of MAN who reiterated the associationâ€™s support for the Federal Government and the CBN in these recent positive initiatives, observedÂ that the CBN is providing the intervention fund at a concessionary interest rate of not more than 70% and with a tenor of 10-15 years.
He said that in terms of utilisation,the facility covers lending and refinancing of projects, restructuring of existing portfolios to manufacturers and support for investment in industrial clusters power supply. Observing that the apex bankÂ has established a technical committee comprising the CBN, Bank of Industry (BOI), MAN, NASME and the Bankersâ€™ Committee, to implement the modalities ofÂ Â the intervention facility, he added: â€œMAN further lauds the mission of the CBN to boost the real sector ofÂ manufacturing by unlocking the credit market that has remained stagnant in more than one year because of the contribution of global economic meltdown, the shocks experienced in the domestic capital market and the restructuring of the banking sector initiated by the CBNâ€.
Mr. Mike commended the decision to implement within one month the report of the technical committee established to work out the modalities of the incentive. â€œMAN is optimistic that the private sector would also rise to the occasion by accepting the challenge to expand the contribution of independent power projects to boost the current national capacity.â€
However, he called on his members to embrace the benefits of the intervention fund in order to boost their respective capacities.
Both NACCIMA and NASME while commending the initiative and describing it as a welcome development, moreso counselled that there is need to ensure that the fund is disbursed and equitably too.