….Turn pandemic adversity to Opportunity, Emefiele urges Nigerians
By Dayo Omoogun
In its continued effort towards cushioning the effect of the Corona Virus Disease on the Nigerian economy, the Central Bank of Nigeria has announced a whopping trillion naira economic stimulus which is tailored towards boosting local manufacturing and import substitution across critical sectors of the economy.
The announcement was made by the Governor of the Central Bank of Nigeria on Wednesday, who also revealed that an implementation committee would be put in place next week to give effect to the private sector funded N1.5 trillion infrastructure plan agreed at the “Going for Growth 2” roundtable organized by the apex bank last week in Abuja.
This is coming two days after the apex bank announced a 6-point palliative to douse the effects of the pandemic on the economy. The earlier measures announced on Monday are: interest rates cut from 9 to 5 percent per annum for one year effective March 1, 2020 on all CBN intervention facilities, extension of moratorium by one year on all CBN intervention facilities effective March 1, 2020, N50bn targeted credit facility through NIRSAL Microfinance Bank for households and small- and medium-sized enterprises (SMEs) hard hit by Covid-19, approval of leave for Deposit Money Banks (DMBs) to consider temporary and time-limited restructuring of tenor and loan terms for businesses and households most affected by the outbreak of Covid-19, Credit support for healthcare industry and strengthening of CBN Lending to Deposit Ratio (LDR) policy for Deposit Money Banks (DMBs)
In addition to the N50 billion soft loans to small businesses announced on Monday, March 16, 2020, Emefiele said the CBN would also increase its intervention by another N100 billion in loan in 2020, 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 Nigeria to prepare for any major crises ahead.
“According to the statement, “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, Mr. 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.
Emefiele pledged that the bank will continue to monitor the developments and respond appropriately, urging Nigerians to “take advantage of turning what appeared to be an adversity in the pandemic into an opportunity”