Development Finance involves the supply of funds to various sectors of the economy to promote holistic growth.

Besides, as interest rate rises in efforts to curtail the galloping inflation, with aggregate prices for good and services above two-digit rate in the country, the apex bank said it has always considered small businesses in its decision of development financing, which remains steady at single digit charge.

CBN Governor, Godwin Emefiele, said development banking programme was scripted as a special intervention in critical economic segments to minimise the effects of high interest rates on customers and support growth in the economy.

According to him, the intervention strategy, which started in 1977, with the Agricultural Credit Guarantee Scheme, has since been broadened to power and aviation sectors, with special arrangements for small businesses, under the Micro Small and Medium Enterprises (MSMEs).

So far, CBN has disbursed about N393 billion in 490 projects under the Commercial Agriculture Credit Scheme; N23 billion under the Anchor Borrowers Programme; N79.8 billion under the MSME scheme; and N236.4billion under the Power and Aviation Intervention Fund.

Disclosing these at the 2016 Bankers Dinner in Lagos, at the weekend, the bank chief noted that these schemes, when combined, have created over 6.7 million direct jobs and a lot more indirect ones.

These interventions, which has been increased in recent times due to the challenging economic situation in the country, has also been part of efforts to strengthen import substitution policy, to curb the drain on the nation’s foreign exchange reserves.

Meanwhile, the President of the Chartered Institute of Bankers of Nigeria (CIBN), Prof Segun Ajibola, said that 2016 is awash with mixed feelings both at the global level and the domestic space.

“At the beginning of the year, several projections were made and palpable apprehensions filled the air on the not-too-promising global economic outlook. Some of these projections and apprehensions have been confirmed,” he said.

The don noted that the country has also had its fair share of social and economic challenges in 2016, with stuttering growth, foreign exchange dilemma, inflation, insecurity, militancy and harsh operating environment affecting activities.

“But the regulatory bodies in the banking and finance sector are also rising to the challenges currently facing the country. The Central Bank of Nigeria in a bid to finding optimal solutions to the various economic challenges introduced the flexible exchange rate policy in June, 2016 and came up with other policy pronouncements aimed at returning the country to the path of sustainable growth,” he said.

As a way forward, Emefiele has said that the country cannot ignore the agriculture sector, because it remains the largest employer of labour in Nigeria and contributes about 24.2 percent of our GDP. In addition, a good share of the demand for FX today go directly to importing agricultural produce.

“So, CBN has both a direct and indirect rationale to ensure that this sector is revived in a significant way. We are gratified that the Anchor Borrowers’ Programme, together with other initiatives like the Commercial Agriculture Credit Scheme and NIRSAL, are proving to be successful in several states.

“In Kebbi State, over 78,000 smallholder farmers are now cultivating about 100,000 hectares of rice farms. It is expected that over one million metric tonnes of rice will be produced in that State alone this year,” he said.

Nigeria consumes about 6.1 million tonnes yearly and only produces 2.5 million metric tonnes, but the expected produce will go a long way to make rice available.

“The CBN remains committed to do more in the identified crops such as rice, maize, sorghum, tomatoes, cassava, cocoa, cotton, dairy, and groundnut,” he added.

But Ajibola added: “As a major stakeholder in the Nigerian project, CIBN constantly engages with players in the banking industry and other allied sectors to support government and regulatory institutions’ efforts aimed at addressing the current lacklustre performance of the economy.

“We have restructured the synopsis of our conferences, seminars and workshops to focus squarely on pressing social and economic issues. The communiques that proceed from these knowledge event platforms are widely circulated to concerned agencies both in the public and private sectors,” he said.

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The amendment is contained in a circular issued by Kelvin Amugo, the Director, Financial Policy and Regulatory Department, CBN, on Tuesday in Lagos.

According to the bank, the scheme is to fast track development of the agricultural sector by providing credit facility to commercial agricultural enterprises at single digit interest.

Besides, it said that the revision of the guidelines was to sustain public interest in the scheme and enhance its operations.

According to the bank, the revision affects Sections 8.0 and 17.0 (b) (IV), which provides that payment of interest on CACS facilities should not be beyond nine per cent.

It said that the nine per cent must be inclusive of all charges, adding that the charges should be shared in the ratio of seven per cent to the participating banks and two per cent to the CBN.

The CBN said that Section 8.0 Sub-section (ii) of the CACS guidelines had been amended accordingly to reflect the revised interest sharing ratio which takes effect from April 29.

“Funds shall be released to the participating banks at two per cent rate after a confirmation of its intent/readiness to disburse the funds.

“Participating banks and the banking public are enjoined to note that the revised guidelines dated April 29, supersedes the previous ones,” it added.

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According to the breakdown of the figures contained in the individual banks’ 2013 Annual Report, Zenith Bank paid the highest fine of N276 million for various contraventions, as it was fined for promoting top management staff without CBN approval, insufficient data for lodgment on credit report and non-rendition of original certificate of capital importation.

Sterling Bank paid N52.97 million fine for promoting management officials without CBN’s approval and foreign exchange examination infraction, among others.

UBA was fined N43.70 million for opening a branch without prior approval of CBN, improper reclassification of public sector deposits and appointment of staff without CBN approval, among others.

Diamond Bank paid N7.99 million fine for numerous infractions, which shows a fine of N2 million for the delay in refunding a customer’s $827,223 as directed by the CBN.

It was fined N4 million for promoting two senior management personnel without the approval of the CBN and was also ordered to pay N1.99 million for withholding a customer’s funds for 26 days after the promoters of the customer had written the bank that they were no longer interested in a facility.

Similarly, FCMB Group was fined N6.1 million for delayed disbursement for 20 days to the beneficiary under Commercial Agriculture Credit Scheme, among others.

Skye Bank was fined N6 million for failure to obtain CBN’s approval to promote a senior staff and under reporting of regulatory returns on public sector deposits, as well as for failure to update documentation on a customer’s account.

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