CBN Says it Spent 3.5 Trillion to Cushion the Effect of COVID-19 on the Economy

The Central Bank of Nigeria says it has disbursed a total sum of N3.5 trillion to cushion the negative effect of the global health pandemic on the country’s economy.

This was stated in the 132^nd communique of Monetary Policy Committee (MPC) published on Central Bank of Nigeria (CBN) website, and signed by its Governor, Godwin Emefiele.

The central bank governor, Emefiele said that the COVID-19 relief fund were largely disbursed in the areas of manufacturing, agriculture, electricity and gas, solar power and housing constructions among others.

“Recent interventions are largely in the areas of manufacturing, agriculture, electricity and gas, solar power and housing constructions among others.

“Real sector funds, (N216.87 billion); COVID-19 Targeted Credit Facility (TCF), (N73.69 billion); AGSMEIS, (N54.66 billion); Pharmaceutical and Health Care Support Fund, (N44.47 billion); and Creative Industry Financing Initiative (N2.93 billion).

“Under the Real Sector Funds, a total of 87 projects that included 53 Manufacturing, 21 Agriculture and 13 Services projects were funded.

“In the Health Care sector, 41 projects which included 16 pharmaceuticals and 25 hospital and health care services are funded. Under the Targeted Credit Facility, 120,074 applicants have received financial support for investment capital.

“The Agri-Business/Small and Medium Enterprise Investment Scheme (AGSMEIS) intervention has been extended to a total of 14,638 applicants, while 250 SME businesses, predominantly the youths, have benefited from the Creative Industry Financing Initiative,’’ he stated.

According to Emiefele, the apex bank will support the Federal Government’s one year Economy Sustainability Plan (ESP) by contributing over 1.8 trillion of the total sum of #2.3 trillion needed.

He also said that the bank’s Loan to Deposit Ratio (LDR) policy saw a significant growth from N15.57 trillion to N19.33 trillion across various sector between May 2019 and August 2020.

“This growth in credit was mainly to manufacturing (N866.27 billion), consumer credit (N527.65 billion), oil and gas (N477.65 billion), agriculture (N287.11 billion) and construction (N270.97 billion),’’ he said.