COVID-19: CBN Floats N1trn Economic Stimulus
- Engages Bank Chiefs March 21
- Boosts Health sector with extra N100bn facility
BY COBHAM NSA, ABUJA – Less than 48 hours after unveiling a six-point palliatives to address emerging challenges of the corona virus pandemic on the Nigerian economy and global supply chains, the Central Bank of Nigeria (CBN) is again offering a whopping N1 trillion to boost interventions in all critical sectors of the economy.
The apex bank’s decision to increase intervention in local manufacturing and import substitution is in addition to the recent N100 billion loan support to the nation’s health authorities in preparations of emerging challenges over the coronavirus outbreak globally.
The N100 billion facility is to assist laboratories, researchers, experts and innovators in working with global scientists to patent and or produce vaccines and test kits In Nigeria to prepare for any major health crises ahead.
A statement by the CBN governor, Godwin Emefiele, in Abuja on Wednesday said in stimulating domestic manufacturing activities and import substitution in the economy, the intervention will also serve as a catalyst to create jobs and provide succour to people adversely affected by the deadly virus.
Mr Emefiele also hinted that the apex bank management will meet with the Bankers’ Committee on Saturday, March 21, 2020 to have a robust engagement and work out modalities in handling the intervention fund
He further urged all commercial banks in the country to offer tangible support to pharmaceutical companies and the Healthcare industry in this critical time of the global pandemic that has seen international oil price plunging to an all time low of $25 per barrel on Wednesday with its attendant low accretion to the nation’s oil earnings.
The CBN Governor said enhanced support by Deposit Money Banks (DMBs) to the country’s pharmaceutical and healthcare industries should aim at improved local drug manufacturing; increased bed count in hospitals across Nigeria; and funding intensive care as well as training, laboratory testing, equipment, Research and Development.
According to the statement, in the coming days, CBN will continue to reel out its support for the economy, adding that an Implementation Committee that will action the private sector contribution of N1.5 trillion Infrastructure funding with the purpose of linking farming communities to markets as agreed at the recently concluded “Going for Growth” Roundtable last week will be set-up next week.
He said details of how the unveiled facilities are to be accessed would be made public shortly, adding that the CBN had also set-up the Financial Markets Situation Room to monitor global markets and advise the Bank on adequate response.
Similarly, the CBN Governor has challenged all DMBs and other regulated Financial institutions in the banking industry to trigger their business continuity plans to ensure their staff and families are protected, and their operations remain largely undisrupted.
Emefiele said in the present circumstances, the banks must strictly adhere to the directives, advice, and notices from the Federal Ministry of Health, National Centre for Disease Control (NADC) and other relevant government agencies on national response measures to COVID-19.
The apex bank boss said to check possible spread of the virus, all financial institutions must ensure regular and appropriate sanitization of their premises while making available in all their locations, adequate sanitization materials as well as discourage large gatherings of staff and customers.
For him, Nigerians must work on taking advantage and turning what appeared to be an adversity in the pandemic into an opportunity for huge economic growth and development for the country.
This is as he assured that the apex bank would not relent in monitoring all developments on the COVID – 19 pandemic with a view to design appropriate Monetary response to protect Nigerians as well as the nation’s economy
