Nigeria’s Federal Executive Council (cabinet) has approved the immediate disbursement of N130 billion (about US$866 million)in low interest loans for the refinancing and restructuring of the `Real Sector’ of the Nigerian economy.
Nigeria’s Minister of State for Information and Communications, Labaran Maku, told reporters after the weekly cabinet meeting, presided by Vice President Namadi Sambo that the amount was part of the N500 billion (about US$3.3 billion) earmarked by the Central Bank of Nigeria (CBN) for the resuscitation of ailing industries in the country.
He said that the guidelines for the execution of the N500 billion (about US$3.3 billion) had been developed.
He revealed that the CBN Governor briefed the Council on the performance of the nation’s economy in the second quarter of 2010 and that steady growth had been recorded during the period under review.
“The Council was informed that there had been a steady growth in GDP, driven largely by the non-oil sector, particularly agriculture and a moderation in inflation.
“Interbank rates and other money market rates, including lending, also moderated. The foreign exchange was substantially stable, while the recovery in the capital market continued,” he said.
Maku stated that the growth in monetary and private sector credit aggregates remained slow.
He said that the CBN Governor also informed the Council that the implementation of the banking sector reform had continued to engender confidence in the system.
He explained that credit by the rescued banks had also continued to grow, while most of them had returned to profitability.
He announced that the modality for putting into operation, the Asset Management Corporation of Nigeria (AMCON), which was signed into law by President Goodluck Jonathan, on July 19, was being finalized.
He expressed optimism that the law would help to further stimulate the recovery of the financial system.
“Without the establishment of AMCON, the rescued banks would have been liquidated, if there are no viable buyers,” he said.
Maku observed that the CBN Governor’s presentation to the Council indicated that the economy was on “sustainable growth, especially the non-oil sectors led by agriculture, retail trade, services and construction.”
According to him, the Council appreciated the candor and depth of the CBN governor’s report on the economy, especially his determination to press ahead with critical reforms in spite of pressures from vested groups to derail the reforms.
Source African Press Agency
African News from NetNewsPublisher.com
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