CBN Governor Godwin Emefiele hinted at the possibility of foreign exchange access being tightened for some items, as well as an expansion of its anchor borrowers scheme.
The Governor disclosed this in remarks made at the Monetary Policy Committee (MPC) meeting held yesterday.
“The committee urged the bank to extend the success recorded in the anchor borrowers programme too other items such as fish, palm oil, etc. by introducing more stringent measures to access to foreign exchange for products that can be produced within Nigeria.”
Likely Gainers and Losers
For importers of these items, lower foreign exchange access could reduce the amount they can import, as well as increase their landing costs.
On the flip side, domestic producers could witness increased demand. Listed oil palm producers such as Presco and Okomu Oil may, thus, have access to cheap loans and could witness increased patronage.
The two listed firms had witnessed bumper results at the peak of the FX crisis, but enhanced foreign exchange liquidity may have led to an increase in cheap imports.
Doubling down
The move may be in response to what the CBN Governor perceives as the success of the anchor borrowers scheme.
Emefiele, during the CFA Nigeria Investor conference, held a few weeks ago, lashed out at critics of the programme, asking them to keep quiet.
“We have empowered 800,000 people in our rural communities. We have disbursed over N100 billion on this project. That is why it is painful when people say that it hasn’t worked. We are importing rice. It’s very discouraging. That’s why I say. If you can’t join us in this message, just keep quiet and let us continue on our journey.”
The apex bank, perhaps in response to critics last week released an evaluation and impact assessment report of the programme.
The Central Bank of Nigeria established the Commercial Agriculture Credit Scheme (CACS) in collaboration with the Federal Ministry of Agriculture and Water Resources in 2009.
The scheme is a sub-component of the Federal Government of Nigeria’s Commercial Agriculture Development Programme (CADP) and was financed from the proceeds of the N200 Billion 7 year bond raised by the Debt Management Office (DMO).