Nigeria: Fund for restructing and refinancing loans to the manufacturing sector
Description
The Central Bank of Nigeria (CBN) as part of a N500billion power and real sector fund has given N200billion to restructure and refinance existing bank loans to the Nigerian SMEs (Small and medium scale enterprises) or manufacturing sector. Included in the objectives of the fund is to 'fast-track the development of the manufacturing sector by improving access to credit to manufacturers' and 'increase output, generate employment, diversify the revenue base, increase foreign exchange earnings and provide inputs for the industrial sector on a sustainable basis. The fund defines manufacturers to include SMEs 'as entities with an asset base (excluding land) of between N5million and with a labour force of between 11 and 300.'
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | Don't know |
| Is there any evidence that alternatives to the proposed measure were considered? | Don't Know |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | Don't Know |
| Was such evidence identified? | No |
| Is such evidence publicly available? | Don't Know |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | No |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | |
| Did the government state its intention to review the measure within one year of implementation? | No |
Date Discovered:
Implemented: Yes
Date of inception: 16 Apr 2010
GTA Evaluation: Amber
Source:
Central Bank of Nigeria. '200BN Fund for Re-financing and Restructuring of Banks' loans to the manufacturing sector.' http://www.cenbank.org/out/2010/circulars/dfd/GUIDELINES%20ON%20N200%20B...
Government Response:
- 533 reads
