Coronavirus: CBN to Inject N1trn Into Economy

• Coronavirus: CBN to Inject N1trn Into Economy

The Central Bank of Nigeria (CBN) has announced another intervention measure to stimulate the Nigerian economy amid raging coronavirus that is eroding economic progress.

Mr. Godwin Emefiele, the governor, CBN, announced a N1.1 trillion intervention fund to support key economic sectors.

The governor disclosed this in a statement made available to journalists in Abuja on Wednesday.

According to Emefiele, N1 trillion of the total fund would be used to support the local manufacturing sector and bolster import substitution.

He, however, said the remaining N100 billion would be used to support the health sector to ensure researchers, innovators and laboratories are of global standard to work and produce vaccines and test kits in the country.

The governor directed all Deposit Money Banks to improve facilities to the healthcare and pharmaceutical industries.

Specifically, he said banks should focus on local drug manufacturers, hospitals across the country to increase bed count, fund intensive care as well as training, laboratory testing, equipment, research and development.

He said, “First, the CBN is directing all Deposit Money Banks to increase their support to the pharmaceutical and healthcare industries.

“In addition to the N50bn soft loans to small businesses already announced, the CBN will increase its intervention by another N100bn in loan this year to support the health authorities.

“Secondly, given the continuing impact of the disease on global supply chains, the CBN will increase its intervention in boosting local manufacturing and import substitution by another N1tn across all critical sectors of the economy.”

Emefiele also said the management of the central bank would meet with the Bankers Committee this Saturday at around 10 am to work out modalities for the intervention.

The CBN continues to announce measures to support and stimulate job creation and economic activities since the coronavirus started. The apex bank lowered interest rates on special intervention funds from 9 percent to 5 percent to support businesses and now announced a N1.1 trillion intervention fund to sustain manufacturing activities and employment.

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