COVID-19: CBN says it expends N3.5 trillion to enhance economic growth

The Central Bank of Nigeria (CBN), says it has so far made a total of N3.5trillion disbursements to cushion the effect of COVID-19 pandemic on the country’s economy.

This is contained in a review of the 132nd communique of the Monetary Policy Committee (MPC) meeting obtained from the apex bank’s website, and signed by its Governor, Mr Godwin Emefiele.

Emefiele said that interventions were largely in the areas of manufacturing, agriculture, electricity and gas, solar power and housing constructions among others.

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

“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,’’ he said.

He added that, the CBN was also set to contribute over N1.8 trillion of the total sum of N2.30 trillion needed for the Federal Government’s one-year Economic Sustainability Plan (ESP).

He said that the bank’s policy on loan to deposit ratio also resulted in a significant growth in credit to various sectors from N15.57 trillion to N19.33 trillion between May 2019 and 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),’’ he said.