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CBN Asks DFIs To Contribute More To Economy

The Central Bank of Nigeria (CBN) has challenged the Bank of Industry (BOI) and other Development Finance Institutions (DFIs) to increase their financial contribution to the economy.
The Deputy Governor of CBN, Finance System Stability, Mr Okwu Nnanna, disclosed this on Tuesday, saying that 5 per cent out of 14.7 trillion credit as at June 2015 was unacceptable.
He said that development banks in Nigeria must begin to make significant impact on targeted sectors of the economy to help cushion the nation’s current financial and developmental challenges.
The CBN official highlighted that agriculture, infrastructure as well as Micro, Small and Medium Enterprises (MSMEs) were three critical sectors that must grow, adding that only the productivity of Nigeria would determine the strength of the Naira at this time.
He said that the CBN has introduced the set of regulatory guidelines to equip the DFIs to access the capital market for funds to finance critical sectors of the economy.
Some challenges the apex bank said must also be tackled in the development real sector were high levels of non-performing loans, weak risk management and political interference.

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