CBN to inject N1 trillion into the economy over Coronavirus

At a crucial meeting with bank chiefs, Central Bank of Nigeria Governor, Mr. Godwin Emefiele has announced that the apex bank will inject an additional N1 trillion to stimulate the Nigerian economy to reduce the shock of the Coronavirus outbreak.

The projected amount is an equivalent of $2.5 billion using current forex rate. Nigeria is Africa’s largest economy but the negative impact of the outbreak due to the crash in price of crude oil could send the country into a recession.

The announcement is coming in less than 48 hours after the CBN reduced interest rates on its intervention loans to 5%.

In an official tweet, the apex bank gave the update that:

  • CBN to boost the health sector with additional N100b loan
  • Implementation Committee to handle N1.5trillion private sector contribution of Infrastructure funding that will link farming communities to markets underway
  • Directs Deposit Money Banks to increase their support to the pharmaceutical and healthcare industries
  • Emefiele advises all DMBs, other regulated entities in the banking industry to trigger their business continuity plans to ensure that their operations remain largely undisrupted
  • CBN urges banks to sanitize their premises and discourage large gatherings of staff and customers
  • CBN restates commitment to protecting Nigerians and the economy
  • Emefiele urges Nigerians to take advantage of turning the seeming adversity of COVID-19 into an opportunity