COVID-19: CBN releases guidelines for operations of N100bn credit support for healthcare

The Central Bank of Nigeria (CBN) has released guidelines for operations of N100 billion credit support for the healthcare sector following the outbreak of COVID-19 in the country.

In a circular signed by Mr Kevin Amugo, Director Financial Policy Regulation Department on Wednesday, the apex bank indicated that indigenous pharmaceutical companies and healthcare practitioners that wanted to expand or build their capacities would benefit from the scheme.

Our correspondent reports that CBN had earlier announced the N100 billion intervention for the healthcare industry to strengthen the sector’s capacity to meet potential increase in demand for healthcare and services.

In the guideline, the apex bank noted that the scheme would provide credit to indigenous pharmaceutical companies and other healthcare value chain players intending to build or expand their businesses.

The CBN said the scheme was also expected to increase private and public investment in the healthcare sector, facilitates improvement in healthcare delivery and reduce medical tourism to enhance foreign exchange conservation.

The bank further explained that the objective of the scheme was to provide long-term low cost finance for healthcare development that would lead to the evolvement of world-class healthcare facilities in the country.

According to the bank, the scheme will improve access to affordable credit by indigenous pharmaceutical companies to expand their operations and comply with the World Health Organisation’s good manufacturing practices.

The CBN noted that the eligible participants under the scheme were healthcare products manufacturers and pharmaceutical equipment.

It added that others are healthcare service providers, medical facilities, pharmaceutical and medical products distribution and logistics services among others.

The CBN said the Deposit Money Banks and Development Finance Institutions were eligible to disburse the fund.