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Inside CBN’s N10 trillion intervention where N193 billion loans have been declared lost 

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The Central Bank of Nigeria’s Intervention Funds Programme, estimated at N10.3 trillion, has achieved a repayment rate of 75.8%. 

The report also states that N193 billion of the total loans disbursed have been declared lost and another N418.9 billion remains doubtful. 

This information is according to a report detailing the breakdown of the bank’s intervention funds over the years. 

ThePressNG exclusively obtained a copy of the reports, which was last updated in September 2023 by bank officials. 

 According to the report, out of the N10.3 trillion in intervention funds, N4.4 trillion has been repaid, while approximately N5.8 trillion remains outstanding. Some of the loans are tenured meaning they only fall due when the principal repayments mature. 

However, only N969.8 billion of the outstanding amount was past due, as some loans had repayment tenures extending years beyond 2023. Based on this, the report claimed the percentage of repayments to amounts due was 75.8%.  

The apex bank report also indicates that N289 billion of the loans are performing, N67.9 billion is substandard and N418.9 billion is doubtful. The report also indicates that N193.9 billion of the loans are lost. 

The apex bank Governor, Yemi Cardoso, has repeatedly criticized the intervention funds carried out under the leadership of Emefiele, claiming that the bank could not implement the interventions appropriately. 

However, sources within the bank also suggest some of the claims of the apex bank governor were made without considering the impact of some of the programs.

One official informed ThePressNG that some of the loans funded some of the projects currently being touted by the Tinubu administration as part of fulfilling its renewed hope mandate. 

The officials cited the Blue and Redline Rail projects, recently released fertilizers to farmers and some of the food released from the strategic reserve of the apex bank. 

They also stated that the tepid economic growth currently being experienced could have been worse were it not for the intervention funds. 

The sources all pleaded anonymity as they could be victimized for stating their independent opinions on the matter. 

Another source also pointed out that while some of the funds may have appeared to be “printed” most were sourced from the CRR deposits of banks. The apex bank funded over 72% of the N10.3 trillion loans.  

As of September 2023 

Note: Some of the figures appear slightly different in the report 

The Anchor Borrowers Program (APB) of the central bank received N1.29 trillion or around 10% of the total disbursement.  

Under the Manufacturing Sector support, the apex bank issued loans totalling N2.4 trillion and labelled as “Differentiated Cash Reserve Requirement (DCRR)”.  

Despite achieving a high repayment rate overall, several lending facilities have significantly lagged in their expected repayments. 

However, the program faced significant challenges, including increased post-harvest losses due to poor logistics and insecurity across the country, a drop in per-hectare productivity owing to the inability of smallholder farmers to afford fertilizers, spill-over effects of the 2022 floods, high input costs, and security challenges. 

While the manufacturing sector has shown a better repayment rate, the apex bank also cited several challenges that could impact their ability to continue servicing the loans.  

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