Guardian: FEC okays return of marketing boards

[NewsCaster]

THE Federal Executive Council (FEC) meeting presided over by Vice President Namadi Sambo yesterday adopted a proposal for the reintroduction of marketing boards.

But unlike the former marketing boards fully funded by government but was abolished by the regime of former military President, Gen. Ibrahim Babangida, the new board, whose modus operandi is to be worked out, will be sustained by the private sector.

The Council also discussed the issue of comprehensive national transportation policy, but this was shelved to enable further discussions by other stakeholders.

The reintroduction of the marketing board, which was submitted as part of the measures to fortify the agricultural sector, was part of the proposals submitted by the Governor of Central Bank of Nigeria, Mallam Sanusi Lamido Sanusi. Sanusi had briefed the Council on the performance

of the economy in the last quarter of 2010.

Minister of Information and Communication, Mr. Labaran Maku, told journalists at the end of the Council meeting that no fewer than 7,195 jobs were created as a result of the disbursement of N199.671 billion by the CBN under the Manufacturers/SMEs loan scheme.

The fund, Maku said, was disbursed to 539 companies through the Bank of Industry (BOI) and reportedly increased the capacity utilisation from 25 to 29.5 per cent.

To make lending by banks to agricultural sector attractive, Maku said Sanusi briefed them on a planned Nigeria Incentive-based Risk Sharing for Agricultural Lending (NIRSAL), which is aimed at reducing risk of lending facilities to agriculture by commercial banks.

According to Maku, "NIRSAL is a new innovative mechanism developed by the CBN for unlocking access to bank financing, and develop risk sharing approaches that would expand opportunities in agricultural value chain activities. NIRSAL is aimed at reducing the risk of lending by commercial banks to agriculture; build the capacity of banks to better understand agricultural lending and increase the outreach of the banks to rural areas by developing efficient financial delivery systems. Overall, NIRSAL was designed to ensure an entire change in agricultural lending by motivating banks that are effectively lending to the sector."

Maku also announced that the Gross Domestic Product (GDP) of the country in the last quarter of 2010 was 8.29 per cent, up from the 7.86 per cent recorded in the third quarter. He also noted that the non-oil sector recorded a GDP increase of 8.87 per cent of the GDP.

The agricultural sector, Maku continued, also recorded 40 per cent of the growth in the growth of the non-oil sector.

He said the economy of the country within the period continued to be resilient while the "Near-to-medium term outlook is positive and the monetary policy will continue to be supportive of government objectives."

Maku said the gains so far realised from the briefing by the CBN governor include the fact that the improvement in power supply was the driving force for the agricultural sector, pledging that it was in the programme of government to improve more on the area for the ripple effect to be more felt.

He further stated that exchange policy has been stable while the CBN would ensure that a dollar would remain at N150 while inflation has been stabilised and growth rate for this quarter expected to hit eight per cent.




Source: FEC okays return of marketing boards