Key highlights:
- Between January and February 2023, the bank disbursed N12.65 billion to three agricultural projects under the ABP.
- The total sum disbursed under the ABP since 2015 is now N1.09 trillion.
- Beneficiaries rise to 4.6 million smallholder farmers cultivating or rearing 21 agricultural commodities on an approved 6.02 million hectares of farmland.
Nigeria’s Central Bank announced it has disbursed the sum of N12.65 billion under the Anchor Borrowers Programme (ABP) to Nigeria’s Agriculture sector.
This was disclosed by the CBN Governor, Mr. Godwin Emefiele said on Tuesday in Abuja at the Monetary Policy Committee (MPC).
The CBN Chief added that the total sum disbursed under the ABP since 2015 is now N1.09 trillion.
2023 so far
Emefiele noted that 4.6 million smallholder farmers cultivating or rearing 21 agricultural commodities have benefited from the policy so far, he said:
- “Between January and February 2023, the bank disbursed N12.65 billion to three agricultural projects under the ABP.
- “It brings the cumulative disbursement under the program to N1.09 trillion to more than 4.6 million smallholder farmers cultivating or rearing 21 agricultural commodities on an approved 6.02 million hectares of farmland.”
Real Sector and Electricity
He also noted that the CBN also released the sum of N23.70 billion under the N1.0 trillion Real Sector Facility to eight new real sector projects in agriculture, manufacturing, and services.
- “Cumulative disbursements under the Real Sector Facility currently stands at N2.43 trillion disbursed to 462 projects across the country, comprising 257 manufacturing, 95 agriculture, 97 services, and 13 mining sector projects.”
He added the bank released N3.01 billion under the Nigerian Electricity Market Stabilisation Facility (NEMSF-2) for capital and operational expenditure of electricity distribution companies
(Discos), citing that this brings the cumulative disbursement under the facility to N254.39 billion.
Backstory
During the MPC, the Central Bank of Nigeria raised its monetary policy rate to 18% from 17.5% in its February 2023 meeting, marking the second interest rate hike in 2023.
The decision was made due to the rising inflation rate in the economy, with headline inflation reaching 21.91% in February, the highest level since September 2005.
The CBN governor noted that stringent micro and macro-prudential guidelines have ensured the stability and sustenance of the banking system despite concerns about the effect of the hawkish stance on the industry.
Factors cited for the rate hike include planned fuel subsidy removal, rising prices of other energy sources, continuing exchange rate pressure, and uncertain climatic conditions.
