Nigeria government has unveil policies to cushion the economy, restore investors’ confidence, and support Small and Medium Enterprises (SMEs) and households as covd-19 hit hard on the country economy.
According to Central Bank of Nigeria circular to all Deposit Banks and the general public on procedure for economic fallout from the coronavirus outbreak.
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The International Monetary Fund has cut its projection for Nigeria’s 2020 economic growth to 2% from 2.5% due to plunging oil prices stemming from the coronavirus outbreak. The West African nation is the continent’s biggest producer and depends on crude for 90% of its exports.
Nigeria government have adjust its 2020 budget, which was based on a crude price of $57 a barrel to $25
Some of the measures are:
1. Reduction In Interest Rate:The apex bank reduced interest rate from 9 to 5% per annum for 1 year, effective March 1, 2020
2.Improve CBN LDR policy:CBN ins introducing incentives to encourage the extension of longer-tenured credit facilities through LDR policy in growing credit to the economy and reducing interest rates.
3. Increase the minimum loan-to-deposit ratios for lenders to force them to give out more credit.
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4. Creation of N50 billion targeted Credit facility: NIRSAL Microfinance Bank for households and SMEs was established to stimulate credit to MSMEs to expand their productive capacity through equipment upgrade.
5. Support to Healthcare industry: CBN set to offers loans to pharmaceutical firms in Nigeria, hospital and healthcare practitioners, who intend to expand/build the health facilities to first-class centres.
6.Renewable energy: provision of financial support to environmentally friendly energy production
7. Innovation and research: Encourage more research in Nigeria universities, research institutions, creative industry initiatives.