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Saturday,
March 21, 2020 / 07.20PM / By CBN / Header Image Credit: Livescience
...Back
N3.5 Trillion Stimulus to economy
...Commit
to Nigeria First
Lagos - As the country continues to tackle the spread
of the coronavirus, the Central Bank of Nigeria (CBN) and the Bankers' Committee rose from an extraordinary meeting held in Lagos on Saturday, March
21, 2020, with the pledge to grant funding facilities (in Naira and foreign
exchange) to pharmaceutical companies in the country to enable them to procure raw
materials and equipment to boost local drug production in Nigeria.
The
Bankers' Committee also gave its full support to the policy measures amounting
to over N3.5 Trillion earlier announced by the CBN in response to the economic
impact of the COVID-19 on Nigeria.
The
Governor, CBN, Mr. Godwin Emefiele, who chaired the meeting and read the
communique, listed the companies to include, but not limited to, Emzor, Fidson,
GSK, May & Baker, Unique Pharma, Swiss Pharma, Neimeth, Sagar, Orange
Drugs, and Dana Pharma.
According
to him, the Bankers' Committee took the decision to support the pharmaceutical
companies given the fact that the present pandemic was of grave public health
concern, coupled with the fact that many drug-manufacturing countries planned
or had already banned the export of drugs and medical supplies from their
respective countries, thereby leaving Nigeria no choice but to produce the
drugs locally.
Mr.
Emefiele further disclosed that the CBN and the Bankers' Committee had resolved
at this time to collaborate with one coherent strategy to provide confidence to
the customers, counterparties, the public and ultimately putting Nigeria
first.
While
disclosing that engagements will be held with correspondent banks, trade
creditors, trading partners regarding existing letters of credit and trade
commitments, the CBN Governor assured that the industry was committed to
resolving all existing commitments in a comprehensive and orderly way.
Meanwhile,
Mr. Emefiele said the industry had also resolved that profit would not be the
primary motive at this time. "Rather, preserving confidence, financial
stability and support for the economy will be the overriding objectives," he
added.
Considering
the disruptions to global supply chains, the CBN Governor and the Bankers' Committee advised Nigerians and companies to prioritize their import needs and
focus more on sourcing raw materials and input locally.
It
will be recalled that in the past week, the CBN, in response to the economic
impact of the COVID-19 on Nigeria, had announced policy measures such as the
additional moratorium of one year on CBN intervention facilities, interest rate
reduction on intervention facilities from 9% to 5%; the activation of the N1.5 trillion
InfraCo Project for building critical infrastructure; the strengthening of the
lending to deposit ratio policy, additional N100billion intervention in
healthcare loans to pharmaceutical companies; and the N1 trillion in loans to
boost local manufacturing and production across critical sectors.
To
improve foreign exchange supply to the CBN, the Bank directed all international
and domestic oil companies and related companies such as oil servicing
companies to sell foreign exchange to the CBN and no longer the Nigerian
National Petroleum Corporation (NNPC).
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