CBN, banks disburse N272.36bn under CACS

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The Central Bank of Nigeria (CBN) has said that credit disbursed under the Commercial Agriculture Credit Scheme (CACS) to the participating banks stands at N272.36 billion.

The apex bank’s economic report for February 2015 released at the weekend said the amount was disbursed by 20 commercial banks for 351 projects.

According to the report, a total of N135.5 million was guaranteed to 5,008 farmers under the Agricultural Credit Guarantee Scheme (ACGS).

The amount represented an increase of 55.1 and 3.1 per cent above the levels in the preceding month and the corresponding period of 2014, respectively.

However, the sub-sectoral analysis showed that food crops obtained the largest share of N877.3 million (77.3 per cent) guaranteed to 3,933 beneficiaries, livestock had N112.3 million (9.9 per cent) guaranteed to 306 beneficiaries, fisheries sub-sector got N62.3 million (5.5 per cent) guaranteed to 185 beneficiaries and mixed crop received N49.3 million (4.3 per cent) guaranteed to 255 beneficiaries.

Meanwhile, the CBN revealed that growth in the key monetary aggregate decelerated further. The report stated that broad money (M2) declined by 1.6 per cent, compared with the 0.1 per cent decline recorded in January.

The apex bank explained that the development relative to the level at the end of the preceding month was due to the 6.4 and 4.3 per cent fall in foreign assets (net) and other assets (net) of the banking system, respectively.

According to the report, narrow money supply (M1) slipped by 5.1 per cent, compared with the level at the end of the preceding month, due to the 6.6 and 4.7 per cent decline in its currency and demand deposit components, respectively.

“Over the level at end-December 2014, (M2), broad money supply fell by 1.70 per cent. Reserve Money (RM) rose by 4.1 per cent from its level in the preceding month.

“Available data indicated that interest rates generally rose during the review month. All other deposit rates of various maturities rose from a range of 3.57 – 10.79 per cent,” it said.

“Similarly, the federally-collected revenue (gross) in the period under review was estimated at N560.84 billion, showing decline of 38.1 and 21.1 per cent below the receipts in the preceding month and the corresponding period of 2014, respectively.

“At N359.73 billion, oil receipts (gross), which constituted 64.1 per cent of the total revenue, was lower than the receipts in the preceding month and the corresponding period of 2014, by 39.8 and 26.0 per cent, respectively.

“The fall in oil receipts relative to the level in the preceding month, was attributed to the decline in revenue from crude oil and gas exports, occasioned by the drop in the price of crude oil in the international market,” the report claimed.

In the month under review, non-oil receipts stood at 35.9 per cent of the total was 10.4 per cent lower than the receipts in the preceding month and the corresponding month of 2014, respectively.

The report explained: “The development reflected, largely, the fall in receipts from National Information Technology Development Fund (NITDEF) and independent revenue of the Federal Government.”

In addition, it stated that foreign exchange inflow and outflow in the month through the CBN stood at $1.90 billion and $4.30 billion respectively, thereby resulting in a net outflow of $2.40 billion.

“Foreign exchange sales by the CBN to authorised dealers amounted to $3.58 billion, showing an increase of 5.2 per cent above the level in the preceding month.

“Relative to the level in the preceding month, the average naira exchange rate vis-à-vis the US dollar remained the same at the RDAS segment but depreciated at both the Bureau de Change and interbank segments of the market,” the report stated.

The report showed that the total request for the standing lending facility (SLF) in the month of February 2015 stood at N1,060.01 billion, consisting of N154.50 billion (direct SLF) and N905.51 billion (Intraday Lending Facility converted to overnight repo), reflecting a daily average of N66.25 billion for the 16 transaction days in the month, compared with a total request of N75.39 billion, with a daily average of N9.42 billion in eight transaction days in January 2015.

Transactions at the Standing Deposit Facility (SDF) window amounted to N794.28 billion.

According to the report, this represented a daily average of N46.72 billion for the 17 working days in the month, reflecting a decline of 69.14 per cent below the level in the preceding month.

Culled from http://sunnewsonline.com/new/?p=120243

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