CBN releases N130bn to Real Sector
...IFC pledges investment boost for SMEs

From COBHAM NSA, Abuja
Posted: Wednesday, July 28, 2010

CENTRAL Bank of Nigeria (CBN) Governor, Malam Sanusi Lamido Sanusi yesterday said about 130 billion Naira has been released to the Bank of Industries (BOI) for disbursement to Small and Medium Enterprises (SMEs).
He said the amount, which is part of the 500 billion Naira infrastructure fund, meant to assist the real sector of Nigeria’s economy, would be disbursed through designated banks.
Speaking when he received the Vice President, Global Industries of the International Finance Corporation (IFC), Mr Jyrki Koskelo in Abuja, Malam Sanusi said the apex bank was working on perfecting strategies that would encourage Deposit Money Banks (DMBs) to invest in SMEs.
The formal signing ceremony for the funds disbursement would be performed by President Goodluck Jonathan soon, adding that a total sum of 200 billion Naira would be given out to the SMEs before December 2010 ending.
According to the CBN governor, discussions were currently ongoing with investors on the 10 troubled banks, and bids for prospective core investors of the banks have already been submitted based on the July 31, 2010 deadline for the bids’ submission.
He explained that the bids would be handled transparently by the CBN going through due diligence at the end of which a preferred and a reserved bidder would emerge.
Malam Sanusi said the apex bank was in partnership with the IFC to reduce the strain on the recently signed into law Assets Management Company of Nigeria (AMCON) Act by Mr President
The governor hinted that for now, no bank has been put out for sale, noting that aside from the 10 troubled banks, others were presently re-strategizing to boost their capital base. He said the arrangement would be through either mergers or acquisition for better performance.
In his remarks, Mr Jyrki Koskelo, who applauded the CBN’s over its on-going reforms, said banks in every country need support from institutions such as the IFC.
He stated that the corporation would continue to work with the CBN and DMBs to ensure that the sector maintains a balance on the long run, adding, “Our role is to be supportive of what the CBN is doing; we are going to engage in other transactions in the Nigerian economy to especially strengthen the banks and have a strong economy in Nigeria.”
“One important thing is to fix the banks and the CBN is doing that very well, I must admit, we will encourage the banks to invest more in SMEs, power, health, agribusiness and infrastructure,” Mr. Koskelo said.
He said the IFC was currently sponsoring risk management and good corporate governance, stressing that the corporation would “have to encourage the private sector to invest in power since CBN or government cannot do it alone, there must be a policy in place for that as well.”
It would be recalled that recently, BOI stated that it has screened and approved 130 firms to draw from the fund, with the CBN expected to go through the approval and release the funds later.