The Central Bank of Nigeria (CBN) has said that it recovered N264.04 billion from borrowers under its development financing programmes in the first six months of 2023.
According to the bank’s half-year economic report for 2023, this was 27.4% higher than the N207.33 billion recovered in the same period of the previous year.
However, Nairametrics observed that the CBN had earlier reported a recovery amount of N471.82 billion in H1 2022, which means that the figures provided by the CBN in the 2023 reports, contradict what was earlier published in the bank’s 2022 half-year report.
CBN gave fewer loans in H1 2023
The apex bank further noted that it reduced the pace of its intervention loans compared to the previous year.
According to the bank, it released N331.33 billion in H1 2023, which marks a 35.43% decrease when compared to N513.13 billion funds released in the same period of the previous year.
It was also noted that 63 projects benefited from the financing programmes in the first six months of this year.
The report read:
- “The Bank continued to intervene in the critical sectors of the economy. The Bank reduced the pace of its intervention in the critical segments of the economy, relative to the preceding and the corresponding periods of 2022.
- “A total of 63 projects, including 134,275 individuals and businesses benefited from the Bank’s 13 intervention programmes, compared with 125 and 187 projects, including 279,211 and 134,275 individuals and businesses that benefited from its 20 and 19 programmes in the preceding and the corresponding periods of 2022, respectively.
- “Cumulative disbursement declined by 35.4% to N331.33 billion below N513.13 billion in the preceding half of 2022, while the repayment increased by 27.4% to N264.04 billion above N207.33 billion in the same period. The increase in recovery reflected the drive for payments.”
More Insight
- The CBN issued credit facilities as part of its development finance interventions in the critical sectors of the economy, especially the agricultural sector. The aim is to improve access to credit, ensure price stability, and support the country’s job creation and economic recovery.
- However, repayment by beneficiaries had been a difficult task, forcing the bank to take extra measures. President Bola Tinubu reportedly directed security agencies to assist the CBN in recovering funds from borrowers, especially under the Anchor Borrowers Programme.
- Also, the CBN suspended new loan applications under its Intervention Programme, a move by the new CBN leadership to streamline its financial commitments and refocus on more traditional central banking roles. The apex bank further tasked commercial banks, which previously facilitated the distribution of these intervention loans, with the responsibility of recovering outstanding loans issued under these programmes.
