Why businesses, individuals can’t access N1.75trn intervention funds –

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By Yinka Kolawole

Low interest income and lopsided credit risk burden may have hampered the disbursement of about N1.75 trillion special intervention funds of the Central Bank of Nigeria, CBN, and the Development Finance Institutions, DFIs.

Sources at the various financial institutions who are supposed to be the disbursement entities estimated the level of disbursement at about 10 per cent of the aggregate funds.

According to them the requirement that makes deposit money banks (DMBs) bear all the credit risks associated with disbursement of the funds has been the major drawback in the banks’ active participation.

But CBN has indicated that its Anchor Borrowers Program, ABP, intervention fund is recording huge disbursements.

Intervention funds are initiatives of the Federal Government aimed at providing subsidized loans, at…



Source: Vanguard Newspaper