BANKING

5-Minutes Breakdown of CBN’s 5 Year Plan

CBN Gov, Godwin Emefiele

Off the back of his reappointment as the Governor of the CBN, Godwin Emefiele presented his second-term plans to the public on Monday, June 24, 2019. The 15-page-long communique contains the roadmap of the Nigerian economy for the next five years and we’ve pulled out 10 key areas that you can’t ignore.

  1. Agriculture, Manufacturing, Information Technology, and the Creative sector got special mentions as the non-oil sectors to receive optimal attention and funding.
  2. Productivity in Agriculture will be increased through the provision of improved seedlings and access to finance for rural farmers. 10 different products will be targeted: Rice, Maize, Cassava, Cocoa, Tomato, Cotton, Oil-palm, Poultry, Fish, and Livestock/Dairy.
  3. Interest rates will be lowered for businesses thereby improving access to loans.
  4. There are plans to diversify Nigeria’s export base and support domestic industries to boost job creation.
  5. Exporters will enjoy a reduction in the length of time for processing export documents. It will become a one-day-exercise instead of one week through a Trade Monitoring System to be launched in October 2019.
  6. Payment channels will be improved to allow transactions across different banks and payment modes. The security of transactions via these platforms are also a big deal.
  7. The range of acceptable collaterals will be broadened to improve access to loans.
  8. Within these 5 years, a system will be introduced to enable large departmental stores, automobile companies, equipment leasing companies provide credit facilities at reasonable interest rates.
  9. The cost of mortgage loans will be reduced with increased accessibility.
  10. A recapitalisation (a big word for increasing the amount of money Banks need to have to be in Business) exercise will be initiated to ensure personal monies are safe and that Nigerian banks are strong enough to compete internationally.

You can read the full communique on the CBN website

What do you think? Just the usual talk or actually promising?

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