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Bullion

Keywords

Central Bank of Nigeria, CBN, Composite Indicator, Development Finance

Abstract

The Central Bank of Nigeria (CBN) aggresively pursues credit and interest rate policies to promote inclusive economic growth. Through this, it aims to expand availability, access, and affordability of financial capital for micro, small and medium enterprises (MSMEs) With a least 24 MSMEs financing programmes of its own, the Bank manages one of the largest suites of developmental programmes among central banks. This paper attempted to serialize and characterize these programmes, hence determine their activity status and discover patterns of implementation effort patronage, and responsiveness of target enterprises to available incentives. Applying Z-score and min-max methods of normalization and geometric and arithmetic aggregation techniques., the study develops a composite indicator and establishes a broad ranking of programmes, based on cumulative loan disbursements, outreach (plan volumes) and principal repayments. Result showed that programmes specifically focussed on agriculture and those introduced to rev the economy following the COVID-19 pandemic dominated the activity series. Programmes specifically targeting youths and multi-sectors were among those with the least activity. It is recommended that the Bank identified why some interventions are not optimal, work to reverse the trend and achieve stated objectives.

Author Bio

The authors are staff of the Central Bank of Nigeria

Publication Title

Bullion

Issue

4

Volume

45

First Page

43

Last Page

57

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