Cbn releases measures to battle economic impact of coronavirus

The Central Bank of Nigeria (CBN) has released measures to mitigate the economic impact of the coronavirus pandemic on the Nigerian economy. Some of the measures include:

  1. Reduction of Monetary Policy Rate (MPR): The CBN reduced the MPR from 13.5% to 12.5% to stimulate economic growth and reduce borrowing costs.
  2. Cut in Cash Reserve Requirement (CRR): The CBN reduced the CRR from 27.5% to 22.5% to increase liquidity in the banking system and support economic activity.
  3. Increase in Liquidity: The CBN injected N1.3 trillion into the economy through open market operations to increase liquidity and support economic activity.
  4. Extension of Loan Moratorium: The CBN extended the loan moratorium for one year to provide relief to borrowers and reduce the risk of loan defaults.
  5. Creation of a N50 billion COVID-19 Support Fund: The CBN created a N50 billion support fund to provide financial assistance to individuals and businesses affected by the pandemic.
  6. Reduction of Interest Rate on CBN's Intervention Facilities: The CBN reduced the interest rate on its intervention facilities from 9% to 5% to make it more attractive for businesses to access funding.
  7. Extension of Tenor of CBN's Intervention Facilities: The CBN extended the tenor of its intervention facilities from 1-3 years to 5 years to provide longer-term funding to businesses.
  8. Creation of a N100 billion Healthcare Intervention Fund: The CBN created a N100 billion healthcare intervention fund to support the healthcare sector in responding to the pandemic.
  9. Reduction of Fees and Charges: The CBN reduced fees and charges on transactions to reduce the cost of doing business and support economic activity.
  10. Increased Surveillance: The CBN increased surveillance on banks and other financial institutions to ensure that they are complying with regulatory requirements and maintaining adequate liquidity.

These measures are aimed at mitigating the economic impact of the coronavirus pandemic on the Nigerian economy, including reducing the risk of loan defaults, increasing liquidity, and providing financial assistance to individuals and businesses affected by the pandemic.