By Naomi Uzor
The Manufacturers Association of Nigeria (MAN), and the Nigerian Association of Chambers of Commerce Industry Mines and Agriculture(NACCIMA), arms of the Organised Private Sector (OPS), have lauded the Central Bank of Nigeria (CBN) for the N500 billion bail out package for the manufacturing sector.
In a separate statements, Tuesday, both MAN, and NACCIMA gave kudos to the apex bank under the leadership of Governor Sanusi Lamido Sanusi, saying they strogly believe that the intervention fund will boost the operational capacities in the manufacturing, Small and Medium Enterprises (SMEs) sector of the economy and power sectors is very commendable.
â€œMAN lauds the mission of the CBN to boost the real sector of the manufacturing by unlocking the credit market that had remained stagnant in more than one year because of the combination of global economic meltdown, the shocks experienced in the domestic capital market and the restructuring of the banking sector initiated by the CBN,â€ said Director General, Mr. Jide Mike.
Manufacturers, he said, further commended the decision of the apex bank to expedite action to give final approval and implement within one month, the report of the technical committee established to work out the modalities of this additional incentives to manufacturers.
MAN 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 MAN thus called on its members to embrace the benefits of the intervention fund in order to boost their respective capacities,â€ the statement added.
Similarly, NACCIMA, applauded the apex bank for the intervention fund, asserting that the fundÂ will create conducive investment climate in the country. â€œThe N500 billion fund provided by the CBN for industrialists to access through the Bank of Industries at 1 per cent interest rate would cushion the cost of providing alternative energy,Â provides easy and cheap funds for the industries,â€œ said NACCIMA President, Dr. Simon Okolo. According to Okolo, beyond the bail out fund, the apex bank should intervene and ensure that inflation is moderated, attain stable interest rates by commercial, banks and exchange rate is controlled.
According to him, the high rate of inflation in the country has drastically lowered the purchasing power of the Naira making it impossible for businessmen to make ends meet.
â€œAlthough, but it would have been a lot better if the Apex bank will perform its core functions of price stability in the economy which will not only reduce inflation, but ensure stable interest and exchange rate that will help the economy generally,â€ he said.