The Central Bank of Nigeria (CBN) has responded to the economic impact of COVID-19 with the reduction of interest rates from 9 per cent to 5 per cent.
While announcing the apex bank’s palliative measures, the Governor, Mr. Godwin Emefiele restates commitment of Central Bank of Nigeria to support household, businesses, other stakeholders to cushion economic impact of corona virus.
Here are ten key statements by the CBN Governor indicating other measures in place to cushion effects of the COVID-19:
- CBN grants one-year moratorium on all principal repayments on all CBN intervention facilities
- CBN directs participating financial institutions to provide new amortization schedule for all beneficiaries of CBN intervention facilities
- CBN Gov, Emefiele announces reduction of interest rates on all applicable CBN intervention facilities from 9% to 5% per annum with effect from March 1, 2020
- CBN creates targeted credit facility through NIRSAL Microfinance Bank for households and small and medium-sized enterprises (SMEs) hit by COVID-19
- CBN announces intervention loans to pharmaceutical companies planning to expand or open drug manufacturing plants in Nigeria
- CBN okays intervention facilities to hospitals and healthcare practitioners who plan to build health facilities or expand existing facilities to first class centres
- CBN grants Deposit Money Banks (DMBs) leave to consider temporary and time-limited restructuring of tenor and loan terms for businesses in oil and gas, agriculture and manufacturing as well as households affected by outbreak of COVID-19
- CBN Gov, Emefiele pledges CBN support for industry funding levels to maintain capacity of DMBs to direct credit to individuals
- Emefiele urges DMBs to continue to build capital buffers to improve resilience of the sector
- The CBN stands ready to provide liquidity backstops as and when required in view of its role as Banker to the Federal Government and lender of last resort”
Emefiele also said that CBN will issue further updates on Bank’s response to economic impact of corona virus.