Nigeria: 5 Banks Contribute N245.8 Billion to CBN's Real Sector Support Facility

May 22, 2017 | Leadership; All Africa

The facility objective is to improve the financing of sectors such as the agricultural value chain, manufacturing, mining, solid minerals activities and other strategic sub-sectors of the Nigerian economy.

In a move to towards increasing credit to priority sectors of the nation's economy, Zenith Bank Plc, United Bank Plc and three other commercial banks invested N245.8 billion to Central Bank of Nigeria (CBN) Real Sector Support Facility (RSSF). The other three banks are Access Bank, Diamond Bank Plc and Stanbic IBTC Holdings Plc. The N300 billion RSSF introduced by CBN in January 2016 and was meant to unlock the potential of the real sector to engender output growth, value added productivity and job creation. Commercial banks were to contribute five per cent of total naira deposits and the Facility will be used to support large enterprises for startups and expansion financing needs of N500 million up to a maximum of N10 billion. According LEADERSHIP findings, Zenith Bank in 2016 contributed N80.6 billion towards the special intervention reserve held by CBN while United Bank for Africa contributed N54.7 billion. Access Bank Plc and Diamond Bank Plc contributed N49.6 billion and N39.9 billion towards the RSSF in 2016 respectively while Stanbic IBTC Holdings added N20,8 billion towards the special intervention fund last year. The CBN said in 2016, the sum of N2.25 billion was released to two projects under the RSSF, bringing the number of projects to four valued at N6.85 billion from inception in 2014. Read more on All Africa.

Source: All Africa