COVID-19: CBN to Stop Economy from Crashing, Injects N1trn

By Dipo Olowookere

The Central Bank of Nigeria (CBN) has announced its intention to quickly provide a lifeline for the nation’s economy by injecting N1 trillion into the system.

On Monday, the apex bank had rolled out ways to support the economy, disclosing that it was providing the sum of N50 billion to mitigate against the effect of the coronavirus (COVID-19) ravaging the global economy.

It had then announced the reduction in the interest rates for its intervention loans from 9 percent to 5 percent, saying it would provide support for the pharmaceutical sector.

On Wednesday, the central bank came out again to announce fresh ways to provide stimulus to the economy so as to prevent it from crashing.

According to the CBN, an additional N1 trillion would be pumped into the economy, while its Governor, Mr Godwin Emefiele, will on Saturday, March 21, 2020, hold a crucial meeting with chief executives of banks in the country mainly to strategize on the stimulus plan.

In its latest intervention strategy, the central bank said it hopes to boost the health sector with an additional N100 billion loan, while an Implementation Committee to handle N1.5 trillion private sector contribution of infrastructure funding to link farming communities to markets was underway.

In view of the present situation, the CBN Governor has directed all Deposit Money Banks (DMBs) to increase their support to the pharmaceutical and healthcare industries.

He then urged them and other regulated entities in the banking industry to trigger their business continuity plans to ensure that their operations remain largely undisrupted.

In order to stop the spread of the deadly virus, which has claimed many lives globally, the CBN urged banks to sanitize their premises and discourage large gatherings of staff and customers.

The apex bank reaffirmed its commitment to protecting Nigerians and the economy, appealing to “Nigerians to take advantage of turning the seeming adversity of COVID-19 into an opportunity.”

On Wednesday, Nigeria recorded five new cases of COVID-19, bringing the total number of cases to eight since the first case was announced on February 27, 2020.