Covid-19: N3.5 trillion disbursed as stimulus package for the Nigerian economy

CBN disbursed N3.5 trillion as stimulus packages to fight the effects of the pandemic on Nigeria’s economy

By William Ukpe

 The Central Bank of Nigeria (CBN) announced that it disbursed N3.5 trillion as stimulus packages to fight the effects of the pandemic on Nigeria’s economy.

This was disclosed by the CBN Governor, Mr Godwin Emefiele,  in the 32nd communique of the Monetary Policy Committee (MPC).

What you should know 

Nairametrics reported in March that the Central Bank of Nigeria and the bankers’ committee agreed to back a N3.5 trillion stimulus package for the Nigerian economy.

According to an excerpt from a communique seen by Nairametrics, “the Bankers’ Committee also gave its full support to the policy measures amounting to over N3.5 Trillion earlier announced by the CBN in response to the economic impact of the COVID-19 on Nigeria.”

The CBN Governor said the packages were distributed in the areas of manufacturing, agriculture, electricity and gas, solar power and others.

“Recent interventions are largely in the areas of manufacturing, agriculture, electricity and gas, solar power and housing constructions among others” he said.

“Real sector funds, (N216.87 billion); COVID-19 Targeted Credit Facility (TCF), (N73.69 billion); AGSMEIS, (N54.66 billion); Pharmaceutical and Health Care Support Fund, (N44.47 billion); and Creative Industry Financing Initiative (N2.93 billion).

“Under the Real Sector Funds, a total of 87 projects that included 53 Manufacturing, 21 Agriculture and 13 Services projects were funded. In the Health Care sector, 41 projects which included 16 pharmaceuticals and 25 hospital and health care services are funded. Under the Targeted Credit Facility, 120,074 applicants have received financial support for investment capital.

“The Agri-Business/Small and Medium Enterprise Investment Scheme (AGSMEIS) intervention has been extended to a total of 14,638 applicants, while 250 SME businesses, predominantly the youths, have benefited from the Creative Industry Financing Initiative,’’

Emefiele added that the Central Bank would disburse the sum of N1.8 trillion of the total N2.3 trillion for the FG’s one-year Economic Sustainability Plan (ESP).

He also added that the CBN increased its loan portfolio to N19.33 trillion from N15.57 trillion between the periods of May 2019 to August 2020.

“This growth in credit was mainly to manufacturing (N866.27 billion), consumer credit (N527.65 billion), oil and gas (N477.65 billion), agriculture (N287.11 billion) and construction (N270.97 billion).”