The Central Bank of Nigeria has announced its first set of policies to cushion the negative impact the deadly coronavirus on Nigerian businesses and economy.
The CBN governor, Godwin Emefiele, announced in Abuja that the interventions included the immediate cut on interest rates of all applicable CBN intervention facilities from nine per cent to five percent per annum for one year, effective March 1.
The CBN said it has about N3 trillion under various intervention programs it operates through the various deposit money banks.
They include the Anchor Borrowers, Commercial Agricultural Credits Scheme, Micro-Small and Medium-scale Enterprise, or Agri-Business/Small and Medium Enterprise Investment Scheme (AGSMEIS) programs.
With the breakout of COVID-19, the CBN said it expects that the ability of companies to repay the loans received under the various programs would be impaired.
Consequently, the cut in the interest rate payable on such loans, the CBN governor explained, would give the businesses a breather to settle their financial obligations and help them continue to grow their businesses.
Also, the CBN governor announced the creation of an N50 billion targeted credit facility for small and medium scale enterprises as well as households impacted by the COVID-19 pandemic.
The apex bank also announced a further extension of the period of grace given for the repayment of the loans by one year on all principal facilities, particularly intervention loans, effective March 1, 2020.
Accordingly, the CBN governor directed participating financial institutions to provide new amortization schedules for all beneficiaries to repay.
In addition, the CBN, through the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) Microfinance Bank for households, micro, small- and medium-sized enterprises (SMES) that have been particularly hard hit by Covid-19.
he support, the apex bank, said also extends to hoteliers, airline service providers, health care merchants, etc. Toll on global business
Following the breakout of the virus late last year in China, the global economy has witnessed massive disruptions in supply chains and a sharp decline in crude oil prices in the international market.
Since the breakout of the virus, the international aviation industry has taken an unprecedented hit, with a loss of over $850 billion through flight cancellations in the last two weeks.
The crisis has equally taken its toll on the New York Stock Exchange (NYSE) and other global stocks and financial markets, which has lost about $13trillion so far.
The CBN governor said the impact of COVID-9 on the Nigerian business is obvious, as it has serious implications on key sectors of the economy, including oil and gas, airlines, manufacturing, trade and consumer markets. He support, the apex bank, said also extends to hoteliers, airline service providers, health care merchants, etc.
Toll on global business
Following the breakout of the virus late last year in China, the global economy has witnessed massive disruptions in supply chains and a sharp decline in crude oil prices in the international market. Since the breakout of the virus, the international aviation industry has taken an unprecedented hit, with a loss of over $850 billion through flight cancellations in the last two weeks.
The crisis has equally taken its toll on the New York Stock Exchange (NYSE) and other global stocks and financial markets, which has lost about $13trillion so far.
The CBN governor said the impact of COVID-9 on the Nigerian business is obvious, as it has serious implications on key sectors of the economy, including oil and gas, airlines, manufacturing, trade and consumer markets.
consumer markets.
NIGERIA INTEREST RATE
The Central Bank of Nigeria left its monetary policy rate at 13.5% during its March 2020 meeting, saying it would assess measures already taken to support the economy in response to the coronavirus outbreak before deciding whether additional steps should be taken. The real GDP growth is expected to weaken in 2020, hampered by the tepid global demand and supply, resulting from the recent outbreak of COVID-19, and the oil price war which has resulted in supply glut and decline in crude oil prices. Meantime, policymakers noted the persistence of inflationary pressures, with the headline inflation climbing for the sixth straight month to a near two-year high of 12.2% in February. The Committee also reiterated the need for the government to urgently reduce reliance on oil revenue by gradually diversifying the economy and improving tax collection.
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Actual Previous Highest Lowest Dates Unit Frequency 13.50 13.50 14.00 6.00 2007 – 2020 percent Daily
Calendar GMT Reference Actual Previous Consensus TEForecast 2019-09-20 01:30 PM 13.5% 13.5% 13.5% 13.5% 2019-11-26 01:30 PM 13.5% 13.5% 13.5% 13.5% 2020-01-24 01:30 PM 13.5% 13.5% 13.5% 13.5% 2020-03-24 01:30 PM 13.5% 13.5% 13.5% 12.5% 2020-05-25 01:30 PM 13.5% 13.5% 2020-07-20 01:30 PM 13.5% 2020-09-21 01:30 PM 13% 2020-11-23 01:30 PM 13%
NOTE: Nigeria’s Central Bank will create a U.S S163 million fund to combat the impact of the coronavirus pandemic and allow banks to give their customers more time to repay loans.
IMPACT OF COVID-19 ON THE ECONOMY ON EXCESS CHARGES ON NIGERIA ECONOMY
The Central Bank of Nigeria (CBN) on Thursday said it has so far recovered over N60 billion from erring banks as excessive charges imposed on customers.
The bank also said it has equally returned same amount to the affected customers.
This is just as the Apex Bank has announced that it had commenced the processes for creation of 10 million jobs in the next five years through investment support in agriculture, using 10 commodity models.
Speaking during a two-day customers sensitisation forum in Owerri, the Imo State capital, the CBN Director of Corporate Communications, Mr. Isaac Okoroafor said the recovery of the excess bank charges was made possible through the bank’s Consumer Protection Department.According to him, the amount was recovered following complaints by 13,000 customers over excess and illegal charges on their accounts by banks.
Okoroafor, who also disclosed that the erring banks were meted with various penalties by the CBN, stated that the Apex Bank was determined to ensure that no bank customer was cheated with excessive charges from their banks.
He added that the CBN adopted intermediation strategy to monitor the banks and ensure they did not misuse customer’s deposits.
He used the opportunity to advise bank customers to report all cases of suspected illegal or excessive charges they feel their banks might have imposed on them.
On the CBN’s development function, Okoroafor said, “We want to stop inflation in the economy by ensuring that prices of food items don’t keep rising at every turn. That’s why we made loans available with single digits interest rate”.
In the light or this, the CBN spokesman disclosed that more than 10 million jobs would be created in Nigeria in the next five years through the Apex Bank’s activities.
The jobs, he added, would be created through 10 commodity models such as cotton, cassava, palm oil, cocoa, maize, tomatoes poultry, fishery, cattle and dairy.
“We will also provide high yielding seedlings as well as extension services to the farmers.
“We’ll equally provide them with the processors or off takers who will buy off their farm products immediately after harvest. This will create the best value chain for everyone.
“If we face cassava for instance in the South East alone, we will create at least one million jobs here.
“Our intention is to bring back farm settlements across the country as it used to be in the past. That’s the easiest way of building our economy”, he said.
====>>>source: Guardian.ng