Fertilizer Producers Receive N35bn Intervention Funds
local producers of fertilisers have got a total of N35bn intervention funds under the Federal Government’s special Presidential fertilizer initiative.
A record by the Central Bank of Nigeria indicated that N25bn was released in 2017, while N10bn was released in 2018.
The CBN disclosed in its financial stability report for 2018 that, “The FGN Special Presidential Fertilizer Initiative was introduced in 2017 to increase the production of fertilizer by local blending plants with a view to making the product more affordable to Nigerian farmers.
“In the review period, the sum of N10bn was released to one project, bringing the cumulative amount released since inception to N35bn.
The CBN also said that the Agri-business/Small and Medium Enterprises Investment Scheme, which had debt and equity components, and was introduced in the second half of 2018 to enhance access to finance for SMEs, leveraging on equity contribution by banks.
A total of 162 projects accessed N343m from the scheme during the second half of 2018.
It stated that N33m was released for 11 projects under the programme in the review period, bringing cumulative disbursements to N159.98m.
Repayments valued at N5.27m were received from 34 projects, resulting in cumulative repayments of N12.28m.
The report added that, “The bank introduced two additional windows, the Differentiated Cash Reserve Requirement and Corporate Bonds, to complement the regular window under the Real Sector Support Facility.
“The windows were established to enhance the flow of long-term credit to the real sector, targeting the manufacturing, agriculture and other employment- and growth-stimulating sectors. Emphasis was on projects with high backward integration and import substitution potential.
“During the review period, the sum of N6.15bn, under the DCRR, was disbursed to four projects.
The RSSF financed four projects worth N38.09bn, compared with five projects worth N23.91bn in the first half of the year, indicating a 20.00 per cent decrease in the number of projects but a 59.30 per cent increase in the value.
“Total disbursements stood at N115.51bn since inception. The sum of N4.95bn was repaid in the second half of 2018, bringing cumulative repayments to N6.63bn.”