The governor of the Central Bank of Nigeria, CBN, Godwin Emefiele, has revealed that the CBN had given out about N8 trillion in interventions to the private sector in the last five years.
Emefiele made this revelation while speaking at the end of the 291st Monetary Policy Committee, MPC, meeting in Abuja on Wednesday.
He said, “In the last four to five years, we have done about N8 trillion in interventions to the private sector of the economy. The loans have been granted for 10 years, with a two-year moratorium and at single digit”.
The CBN boss disclosed, however, that going forward, the apex bank would reduce its quasi-fiscal activities.
Meanwhile, as the Dangote Refinery set to deliver its first products in July, Emefiele said that the refinery would be persuaded to sell foreign exchange earnings to banks at a good rate.
Emefiele said his team would engage the promoter of the refinery, Alhaji Aliko Dangote, to ensure that Nigerians benefitted from the venture, adding that the CBN, the Federal Government and, indeed, the country helped him set up the refinery.
The CBN boss expressed optimism that the refinery would ease the foreign exchange scarcity in the country, noting that with local refining, about 20 per cent cost of the total cost of importing petroleum products could be saved, thereby reducing prices in the long run. He, however, said it was time to exit the fuel subsidy regime.
His words, “By the time the Dangote Refinery comes on stream, the price at which it (fuel) will be dispensed will be lower than what it is when we spend dollars to import because there will be no freight cost, no storage and all other logistics expenses.
“So we will be lucky to be having about 20 per cent savings from refining locally, rather than importing.
“But the important thing is that we have reached a point, whether we like it or not when we must exit subsidy.