The Central Bank of Nigeria (CBN) has reacted with strategy measures to save the country’s budgetary framework in the midst of the proceeded with spread of the monetary effect of the crown infection pandemic clearing over the globe influencing stocks, crypto showcase, country’s economies and so forth.
The infection which was first seen in Wuhan, China has now spread to different countries and mainlands not barring Nigeria. It has brought about the passing of a few a huge number of lives and worldwide exchange is additionally having its own hit.
As a country that relies upon raw petroleum for larger part of its remote trade, the Nigerian economy has likewise been influenced attributable to the accident in raw petroleum cost. Considering this, the Apex Bank has through a roundabout dated sixteenth March, 2020 reacted to the developing danger which the pandemic bears on the Nigerian economy.
The CBN in the roundabout has expressed that all its intercession offices are compelling from March first, 2020 allowed further ban of one year on all chief reimbursements. The Bank guides all taking an interest budgetary organizations to give new amortization timetables to all recipients.
In boosting economic activities in the country, the CBN has reduced its Interest Rate from 9% to 5% per annum on all applicable intervention facilities. And this is effective from the 1st of March, 2020. Understanding the impact the global pandemic have had on Nigerian businesses, the CBN through the NIRSAL Microfinance Bank has established a N50 Billion facility for households and small- and medium sized enterprises (SMEs). This also includes but not limited to hoteliers, airline service providers, health care merchants etc.
As an active measure against health issues that could affect the economy now or another time, the CBN will grant intervention facilities, loan to pharmaceutical companies intending to expand/open their drug manufacturing plants in Nigerian as well as to Hospital and Healthcare practitioners who intend to expand/build the Health facilities to first class centres.
Deposit Money Banks (DMBs) or Commercial Banks have been granted leave by the CBN to restructure the tenor and loan term of businesses and households most affected by the outbreak of the COVID-19 virus. This is particularly those in the Oil & Gas, Agriculture and Manufacturing.
According to the CBN, it will “work closely with DMBs to ensure that the use of this forbearance is targeted, transparent and temporary, whilst maintaining individual DMB’s financial strength and overall financial stability of the system.
As the corona virus takes the world on in various areas of human endeavours, policy measures which would sustain and cause the economy to grow are ever needed. The CBN has said it will continue to monitor developments and will issue further updates as may be appropriate.