Wednesday, September 16, 2020 / 9:40 AM /
Ottoabasi Abasiekong for WebTV / Header Image Credit: Twitter; @cibnigeria
The various COVID-19 interventions by the
Central Bank of Nigeria (CBN) prevented Nigeria from experiencing a larger
contraction in Q2, 2020. Mr. Godwin Emefiele the Governor of the CBN disclosed
this at the opening session of the 13th annual banking and finance
conference, organized by the Chartered Institute of Bankers of Nigeria (CIBN).
The conference which was hosted in Abuja
and Lagos was held Virtually with the theme "Facilitating a Sustainable Future: The Role of Banking & Finance".
According to Mr.
Godwin Emefiele the key interventions and measures that CBN deployed to respond
to disruptions caused by COVID-19 included;
one-year extension of the moratorium on principal repayments for CBN
Forbearance was granted to banks to restructure loans given to sectors
that were severally affected by the pandemic
of the interest rate on CBN intervention loans from 9 to 5 percent
of the Loan to Deposit ratio (LDR) policy, which has resulted in a significant
rise in loans provided by financial institutions to banking customers.
Loans given to the private sector, have risen by over 21 percent over the
of a N100bn credit facility for affected households and small and medium
enterprises through the Nirsal Microfinance Bank;
of an N100bn billion intervention fund in loans to pharmaceutical
companies and healthcare practitioners intending to expand and strengthen
the capacity of our healthcare institutions;
- A N1trn
facility in loans to boost local manufacturing and production across
The CBN Governor expected a recovery in the growth
rate of the country by Q3, 2020 due to the following developments in the
phased withdrawal of the lockdown measures;
of travel by land and air;
in crude oil prices from $19 in April 2020 to an average of $44 in August
- Continued implementation of the CBN interventions in the
agricultural and manufacturing sectors.
On the continued growth in the Nigerian
banking sector, the CBN Governor highlighted the fact that the ultimate
strength of the financial system, relied on the following three key factors;
that banks have adequate capital buffers to withstand similar pandemics.
adequate internal controls that can identify potential risks and putting
in place measures to contain that risk.
able to adapt your business model to changes taking place in the business
He tasked the Nigerian banking and
financial system to support the growth of the Nigerian economy by focusing on
Agriculture, Information and Communication Technology and Infrastructure
Emefiele used the occasion to announce that President Muhammadu
Buhari has approved the establishment of a CBN-led Infrastructure Company.
According to him the Infra-Corp working in
partnership with the African Finance Corporation and the Nigerian Sovereign
Investment Authority (NSIA) would enable the use of private and public capital
to support infrastructure investment that will have a multiplier effect on
growth across critical sectors of the economy.
1. CIBN 13th Annual
Bankers Conference To Focus On Facilitating A Sustainable Future
2. CIBN Inducts
1,864 Bankers, Makes Case For Digital Skills In The Financial Services Industry
3. CIBN To Adopt
Remote Online Proctoring for Its Examinations
4. 21st President
Of CIBN, Bayo Olugbemi, Commits To Driving 2020-2024 Strategy
5. IFC partners
CIBN to Deliver Sustainable Banking Certification Programme
6. CIBN Holds First
Ever Virtual AGM, Elects Mr. Bayo Olugbemi As 21st President
7. CIBN Donates to
Combat COVID-19 in Lagos State
8. COVID-19: CIBN
Adjusts Programmes; Holds AGM Through Teleconferencing, Postpones April Exams
9. 6th CIBN
National Economic Outlook Forum Calls For Diversification of Revenue Base