Central Bank of Nigeria, CBN has reiterated the commitment of the apex bank to ensure that reduction in cash reserve requirement, CRR to enhance banks’ liquidity for real sector financing is achieved.
Director, Finance Policy and Regulation department of CBN, Mr. Kevin Amugo, in a statement posted at CBN website yesterday said that the reduction is part of the Bank’s initiatives towards stimulating output growth, expanding the industrial base, diversifying the economy and increasing the accretion to foreign reserves.
According to him, “to give effect to the above policy thrust, the CBN is introducing measures to ensure that funds realised from the reduction in CRR are applied strictly to qualifying projects.
“Consequently, deposit money banks are henceforth required to appraise their customers’ loan requests relating to the agricultural value chain, manufacturing, mining and solid minerals, infrastructure and other real sector-related projects and forward same to the CBN for
final approval and disbursement.”
Amugo also noted that trading activities and refinancing of projects are not encouraged under this programme.
It would recalled that Monetary Policy Committee, MPC at its 104 meeting held on November 23 and 24, 2015, reduced the CRR by 500 basis points from 25 percent to 20 percent with a view to channelling the liquidity arising there-from to the real sector.

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