(Breaking) COVID-19: CBN to inject N1trn in additional measures to stimulate economy – Vanguard

Additional N100bn for Health sectorAdvises banks to discourage large gathering of staffBy Babajide Komolafe

The Central Bank of Nigeria (CBN) Wednesday announced additional measures to address the possible impact of the Covid-19 virus on the economy, including injection of N1 trillion across all critical sectors of the economy.

The new measures also include N100 billion 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

Furthermore the CBN advised deposit money banks to activate their business continuity plan as well as discourage large gatherings of staff and customers.

CBN Governor, Mr. Godwin Emefiele, disclosed this yesterday in Abuja adding that the management of the CBN will meet with the Bankers Committee on Saturday, March 21, 2020, to work out the modalities.

Emefiele also told newsmen that an Implementation Committee that will execute the private sector contribution of N1.5 trillion infrastructures funding that will link farming communities to markets as agreed at the recently concluded Going for Growth Roundtable last week will be set-up next week.

Given the plunge in the price of oil, which dropped to $25 per barrel on Wednesday with its attendant low accretion to oil revenue, the CBN Governor directed all Deposit Money Banks 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.

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 him, the apex 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.

As a way of checking possible spread of the virus, he urged the institutions to ensure regular and appropriate sanitization of their premises and make available in all their locations adequate sanitization materials and also 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 the people and economy of Nigeria, Emefiele urged that Nigerians take advantage of turning what appeared to be an adversity in the pandemic into an opportunity.

Vanguard

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(Breaking) COVID-19: CBN to inject N1trn in additional measures to stimulate economy - Vanguard