CBN to boost economy with N1trn over Coronavirus

Isola Moses | ConsumerConnect

After presenting a six-point palliative to cushion the sustained impact of Coronavirus on the Nigerian economy and supply chains round the world, the Central Bank of Nigeria (CBN) has decided to increase its intervention in boosting local manufacturing and import substitution by another N1 trillion in all critical sectors of the economy.

Mr. Godwin Emefiele, Governor of CBN, who stated this Wednesday, March 18, in Abuja, FCT, disclosed that the CBN Management would meet with the Bankers’ Committee Saturday, March 21, 2020, to work out the necessary modalities.

ConsumerConnect learnt that besides, a N100 billion loan facility was to support the health authorities to ensure that laboratories, researchers and innovators work with global scientists to patent and/ or produce vaccines and test kits in Nigeria to prepare for any major crises ahead

Mr. Emefiele further said that an Implementation Committee for action on the private sector contribution of N1.5 trillion infrastructure funding that would link farming communities to markets, as agreed at the recent “Going for Growth” Roundtable, would be inaugurated next week.

In view of the plunge in crude oil price, which dropped to $25 per barrel Wednesday, March 18 with its attendant low accretion to oil revenue, the CBN Governor has directed all Deposit Money Banks (DMBs) to increase their support to the pharmaceutical and healthcare industries to enhance local drug manufacturing, increased bed count in hospitals across Nigeria, in funding intensive care as well as in training, laboratory testing, equipment and Research & Development.

Aside from N50 billion soft loans to small businesses earlier announced Monday, March 16, Emefiele stated that the CBN would also increase its intervention by another N100 billion in loan in 2020.

This is to support the health authorities to ensure laboratories, researchers and innovators work with global scientists to patent and or produce vaccines and test kits in the country to prepare for any major challenges in the future.

According to him, the Bank will release details of how the unveiled facilities would be accessed and released, adding that the CBN had also set-up the Financial Markets Situation Room to monitor global markets and advise the Bank on adequate response.

Meanwhile, Emefiele has advised all Deposit Money Banks and other regulated entities in the banking industry to trigger their business continuity plans to ensure that their staff and families are protected, and their operations remain largely undisrupted.

He further advised the banks to adhere strictly to the directives, advice, and notices from the Federal Ministry of Health, National Centre for Disease Control and other relevant government agencies on national response measures to COVID-19.

On checking possible spread of Coronavirus, he urged the institutions to ensure regular and appropriate sanitisation of their premises, make available in all their locations adequate sanitisation materials, and to discourage large gatherings of staff and customers.

While pledging that the CBN will continue to monitor all developments on the COVID – 19 infection and design appropriate monetary response to protect Nigerians and the nation’s economy, the CBN Governor urged that Nigerians take advantage of turning what currently seems to be an adversity in the pandemic into an opportunity.