Manufacturers in Nigeria to get loan at single digit rate, says CBN

The Central Bank of Nigeria (CBN) has assured manufacturers of single-digit loans of not more than 9%.

This was disclosed by the CBN Governor, Godwin Emefiele at the Nigeria International Partnership Forum in Paris, France.

The CBN Governor said that the apex bank’s policy is geared toward increasing exports and reducing imports, and the promotion of ways by which Nigeria can actually produce more of what we usually import.

Emefiele said, “We want to ensure that the manufacturing sector can access capital at a single-digit rate of not more than nine percent.

“It should be easy for you (investors in manufacturing) to access credit at single digit with a two-year moratorium.”

Emefiele, who reiterated the government’s determination to discontinue petroleum subsidy payments, also noted that the country’s economy is on the mend thanks to a resurgence in crude oil prices.

Emefiele said, “Aliko Dangote’s $17.5 billion refinery will produce 650,000 bpd and my brother Abdulsamad Rabiu (BUA), 350,000 bpd. We believe prices of petrol can be more competitive and affordable and we will soon be exiting fuel subsidy.”

“The mantra has been why should we be importing what we can produce? We are encouraging industries, we are making plans on granting credit to these industries,” he added.

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The CBN governor also pointed out that, “inflation rate has dropped from over 18% to 14.1%.”

He added that as we see a further rebound in crude prices, the rate might still drop.

In an effort to increase foreign investments in the economy, the Central Bank of Nigeria (CBN) told global investors that Nigeria is ready for business.

According to the information contained in a letter by the CBN Governor titled “Turning the Covid-19 tragedy into a new opportunity for Nigeria”, the CBN set aside an initial intervention fund of N500 billion over the medium term for manufacturers to procure state of the art machinery and equipment and automated manufacturing models that will fast track local production and support increased patronage of locally made products.