CBN Urges Banks To Support Local Firms To Increase Forex Inflow

The Central Bank of Nigeria (CBN) has urged Nigerian banks to support indigenous companies to increase foreign exchange inflows and boost the nation’s economic growth.

A CBN team on inspection of projects funded through Deposit Money Banks in Lagos advised at the weekend.

The team, who visited the Pinnacle Oil and Gas FZE, Candel Company Ltd., Lagos Free Zone and Sana Building Systems, all in Ibeju-Lekki, Lagos State, noted that the apex bank was counting on these companies to expand export earnings and achieve the goal of 200 billion dollars in foreign exchange repatriation in three to four years.

The Head, Legal Services Department of CBN, Mr Kofo Salam-Alada, during a visit to Candel Company Ltd., called on banks to support Nigerian companies to grow production in the country.

“With what the company is doing I believe that bankers should start coming for them; it’s not just the Central Bank’s Intervention Funds, Nigerian banks should seek them to see how they can partner with them to drive it forward.

“The key thing that Nigerians must also know is that we need to support our own, not just in terms of employment generation; for the CBN that is interested in increasing foreign exchange in this country, it is something that needs to be supported,” he said.

Director, Banking Supervision Department, Haruna Mustapha, said what the company was doing was quite complementary to the apex bank’s RT200, designed to boost the non-oil sector.

“Candel stands at two critical junctures; it is a manufacturing outfit. CBN recently introduced the RT200 designed to boost the non-oil sector and what Candel is doing here is quite complementary to that policy.

“Again, it is providing the needed support to the agricultural sector, which will feed into the policy of the government to diversify the productive base of the Nigerian economy.

“Ultimately we expect to see a solid impact, especially when you consider the various value chain this business touches.

“So, we need more support for companies like Candel and if we can have them insufficient critical mass, the future looks great for Nigeria,” Mustapha said.

Director of Development Finance, CBN, Yila Yusuf, noted that the bank, under its Commercial Agro Credit Scheme, disbursed N2 billion to Candel, adding that they were impressed with what the funds were used for.

“Candel is a company that we are aware of, we have given them N2 billion under our Commercial Agro Credit Scheme, fully paid through First Bank.

“We came here to see, essentially the manufacturing line; they have new products and we are impressed with what we have seen.

“The Central Bank will continue to support and work with them, quite a several jobs, both direct and indirect that we have seen on the floor line,” he said.