Covid-19: Timeline of every pronouncement made by Nigeria to support the economy

The variety of folks residing with the Coronavirus Illness (COVID-19) and deaths from it have been on the rise every day.

The Federal Authorities and its related businesses, particularly the Central Financial institution of Nigeria, have responded with insurance policies to cushion the economic system, restore traders’ confidence, and assist Small and Medium Enterprises (SMEs) and households.

A have a look at a few of the initiatives:

JUNE 26, 2020

The Central Financial institution of Nigeria (CBN) has introduced the disbursement of over N49 billion out of N50 billion focused facility for households and small companies to over 80,000 households and households.

The apex financial institution launched the N50 billion Focused Credit score Facility as a stimulus bundle to assist households and micro, small and medium enterprises which are affected by the coronavirus pandemic.

JUNE 15, 2020

The Nigerian Authorities has launched its Financial Sustainability Plan which it hopes will tackle the financial challenges of the COVID-19 pandemic. The plan was put collectively by the Financial Sustainability Committee (ESC) assembled by President Muhammadu Buhari.

Members of the committee included the Vice President, CBN Governor, 15 Ministers, GMD NNPC, and the Everlasting Secretary.

JUNE 11, 2020

The Nigerian Nationwide Petroleum Company (NNPC) has introduced that alongside facet with its companions, it might be investing 53% of the N21 billion COVID-19 donations from the oil and fuel sector for use in building of hospitals throughout the six geo-political zones.

The oil and fuel sector had pledged N21 billion in type for use for intervention within the healthcare supply system.

The NNPC boss mentioned 53% of the sum pledged has been earmarked for the development of medical infrastructure throughout the six geopolitical zones within the nation,’’ and this was to return from NNPC and its companions.

JUNE 9, 2020

The Central Financial institution of Nigeria (CBN) has disbursed the full sum of N107.45 billion to beneficiaries from the N1.15 trillion Covid-19 Pandemic Intervention Funds up to now, in response to information supplied by the financial institution from the Financial Coverage Assembly for Might 2020.

The Financial institution introduced that underneath the N100 billion Healthcare Sector fund, N10.15 billion has been disbursed and permitted for institutions of superior diagnostics and Well being Centres and enlargement of Pharmaceutical vegetation for necessities medication and intravenous fluids.

The Financial institution has additionally disbursed N93.2 billion underneath the Actual Sector Help Fund to spice up native manufacturing, which consists of 44 Greenfield and Brownfield tasks.

The Financial institution has permitted N10.9 billion to 14,331 beneficiaries underneath the N50 billion Focused Credit score Facility for Households and SMEs, out of which N4.1 billion has been disbursed to five,868 profitable beneficiaries.

JUNE 8, 2020

The Central Financial institution of Nigeria (CBN) introduced that households and SMEs making use of for the N50 billion COVID-19 Focused Credit score Facility wouldn’t be required to supply guarantors earlier than the can entry they will entry the credit score facility.

All candidates to the N50 billion credit score facility, who’ve efficiently accomplished the applying processes and submitted their account particulars, ought to count on credit score alerts 48 hours afterwards. If an applicant doesn’t obtain credit score alert after 48 hours of submitting their account particulars, such an applicant ought to contact the CBN by calling 09010026900.

JUNE 4, 2020

The Nigerian Nationwide Petroleum Company (NNPC) developed a contacts tracing software program utility that may be deployed in all its location throughout the nation.

The novel app was a part of the oil firm’s sectoral contribution to the containment of the unfold of the pandemic inside its formations and ministries, departments and businesses of the federal government.

That is according to the Transparency, Accountability and Efficiency Excellence (TAPE) agenda of the current Management of the NNPC, and the dedication to repeatedly deploy Info and Communications Expertise (ICT) for the needs of operational effectivity and accountability throughout the company’s system.

MAY 28. 2020

Central Financial institution of Nigeria has permitted and disbursed N10.5 billion out of the N100 billion credit score intervention on the healthcare trade to cushion the influence of the Coronavirus on the operators within the sector.

The apex financial institution disbursed the fund for the institution of superior diagnostic and well being centres and the enlargement of some pharmaceutical vegetation for important medication and intravenous fluids

Based on the CBN boss, the apex financial institution had stipulated the necessities to entry the funds. A part of it’s {that a} company entity should submit its utility to a collaborating monetary establishment (PFI) which could possibly be both a Deposit Cash Financial institution or a Growth Finance Establishment of its alternative with a bankable marketing strategy.

The Financial Coverage Committee of the Central Financial institution of Nigeria determined by a unanimous vote to cut back the Financial Coverage Charge (MPR) from 13.5% to 12.5% and to carry all different coverage parameters fixed. Seven (7) members voted for a discount of the coverage price by 100 foundation factors, two (2) members by 150 foundation factors and one (1) member by 200 foundation factors.

Highlights of the MPC’s selections:

I. Scale back the MPR to 12.5 per cent;

II. Retain the Uneven Hall of +200/-500 foundation factors across the MPR;

III. Retain the CRR at 27.5 per cent; and

IV. Retain the Liquidity Ratio at 30 per cent.

The Committee maintained that though a pointy decline in output development is predicted in Q2 2020 and possibly the third quarter if the present stimulus initiatives are correctly carried out, the economic system would reverse to optimistic development by the fourth quarter.

MAY 27, 2020

Central Financial institution of Nigeria (CBN), permitted regulatory forbearance to restructure credit score services within the Different Monetary Establishment (OFI) sub-sector.

The apex financial institution decreased the rates of interest on its services by way of collaborating monetary establishments from 9% to five% each year for a 12 months with impact from March 1, 2020.

MAY 21, 2020

CBN launched N100 billion credit score intervention scheme to mitigate the impacts of COVID-19 on companies, notably these within the well being sector. The scheme, which was deliberate to be funded from the Actual Sector Help Facility – Differentiated Money Reserves Requirement, is to have an rate of interest of 5% each year till March 1, 2021, when it’s going to revert again to 9%.

The apex financial institution insisted that the cash can be given to folks that may import or supply for overseas trade for supplies that may be supply domestically

CBN additionally postponed the much-awaited Might 2020 Financial Coverage Fee (MPC) assembly. The assembly that was earlier scheduled for Monday and Tuesday, Might 25 and 26, 2020, was shifted to Thursday, Might 28, 2020. That is on account of the
declaration of Monday and Tuesday, Might 25 and 26, 2020, as Eid-el Fitr holidays.

The apex financial institution assured that it has put in place all mandatory equipment for the assembly to now maintain for under someday on account of the on-going COVID-19 nationwide lockdown and to align this assembly with extant guidelines of the Presidential Job Power (PTF) on COVID-19 and advisories from different related businesses.

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MAY 19, 2020

The Central Financial institution of Nigeria (CBN) tasked industrial conglomerates working within the nation to assist efforts of the federal government to develop the nation’s economic system and return it to its inexperienced days. CBN Governor, Godwin Emefiele, warned that the apex financial institution wouldn’t assist the importation of things that could possibly be produced in Nigeria.

In a digital assembly with Chief Govt Officers (CEOs) of conglomerates in Nigeria, Emefiele defined that the CBN, according to President Muhammadu Buhari’s want, was decided to return the Nigerian economic system to the interval when the manufacturing and agricultural sectors fashioned the bottom of the economic system.

MAY 18, 2020

The Federal Authorities of Nigeria prolonged the gradual easing of the COVID-19 lockdown throughout the nation by two weeks.

Chairman of the Presidential Job Power (PTF) on COVID-19, Boss Mustapha, said that despite the modest progress made, the nation continues to be not but prepared for full reopening of the economic system and mentioned that robust selections must be taken for the nice of the better majority.

Central Financial institution of Nigeria (CBN) additionally signed an settlement with the Nigerian Nationwide Petroleum Company (NNPC) to spend as a lot as N1 billion as quarantine prices for about 3,000 Nigerian returnees.

The choice by the duo regulator was disclosed by Nigeria’s International Affairs’ Minister, Geoffrey Onyeama. Based on Onyema, it is a CSR gesture by the CBN and the NNPC. The N1 billion is predicted to cowl the prices of lodge lodging and the feeding of the returnees

MAY 16, 2020

Federal Authorities introduced that new Micro Small and Medium Enterprises (MSMEs) will entry Nationwide Company for Meals and Medication Administration and Management (NAFDAC) registration of their merchandise at an 80% low cost, over the subsequent 6 months.

This concession covers MSMEs which are into manufacturing of meals, medication, and associated consumables. As an added incentive, the primary 200 micro and small companies to register on the e-platforms can be allowed to do it for gratis – zero tariffs.

In view of present financial challenges confronted by companies because of the pandemic, the federal government has additionally authorised NAFDAC to grant a waiver on administrative costs for overdue/late renewal of expired licenses of merchandise for a interval 90 days.

MAY 12, 2020

CBN disclosed that it was creating a framework to supply monetary assist to assist the combat towards Coronavirus Illness within the nation. Based on Emefiele, the fund can be launched as quickly because the vaccine was validated by well being authorities.

MAY 10, 2020

CBN assured overseas traders that repatriating their funds from the nation was secured regardless of foreign exchange associated income shortages because of the drop from the sale of crude oil globally.

The apex financial institution had put in place insurance policies to make sure an orderly exit for those who is perhaps all for doing so and likewise urged traders to be affected person as such repatriations have been being processed, owing to the Financial institution’s coverage of orderly exit of investments.

MAY 3, 2020

CBN and the Bankers’ Committee ordered all banks within the nation to not retrench or lay-off any employees of any cadre (both full-time or part-time). The apex financial institution additionally mentioned that its approval should be sought if it turned completely essential to lay-off any such employees.

MAY 2, 2020

The Nigeria Incentive-based Danger Sharing System for Agricultural Lending (NIRSAL) Microfinance financial institution, on behalf of the Central Financial institution of Nigeria (CBN), began the disbursement of the N50 billion Focused Credit score Facility (TCF) to beneficiaries.

The ability is a stimulus bundle which was launched by CBN, to assist mitigate the influence of the coronavirus pandemic on households and MSMEs.

APRIL 30, 2020

CBN prolonged the deadlines issued to Microfinance banks (MFB) to adjust to its revised minimal capital necessities.

APRIL 29, 2020

CBN resumed the gross sales of {dollars} to SMEs who want overseas trade for important imports, in addition to Nigerian college students in overseas faculties who must pay their college charges.

This comes because the world-wide COVID-19 lockdown begins to ease up, at the same time as enterprise actions are anticipated to step by step return to regular. In view of the gradual easing of the COVID-19 lockdown each globally and in Nigeria.

APRIL 28. 2020

The apex financial institution lifted the non permanent suspension positioned on cheque clearing within the nation with impact from Tuesday, April 28, 2020.
Within the round, it defined that it lifted the suspension in furtherance of its efforts within the improvement of a secure and environment friendly fee system within the nation.

IMF mortgage
The manager board of the Worldwide Financial Fund (IMF), permitted $3.Four billion as Fast Financing Instrument (RFI) as fiscal assist to Nigeria throughout this era of coronavirus pandemic.

The fund that was requested by Nigeria is for use to mitigate the influence of the coronavirus pandemic on Nigeria’s economic system because the nation grapples with dwindling authorities income and an financial disaster following the crash of crude oil costs globally.

APRIL 14, 2020

In preparation for post-COVID-19, CBN introduced 4 main areas of focus. They’re:

• Provision of inexpensive housing: Right here the CBN will create an intervention fund which can goal housing building by builders who present proof of profiled off-takers with the capability to repay the mortgage.

The BVN can be used to confirm the data given by the off-takers earlier than the builders can entry the ability. The CBN can even help the mortgage finance sub-sector, help land administration businesses on the states to construct capability for immediate processing and issuance of land titles.

• Renewable power: The CBN, over the subsequent three years, can be offering monetary assist to environmentally pleasant power manufacturing, as this has tangential long run well being advantages.

• Leading edge analysis: Additionally, the financial institution can be offering funding and inspiring efforts geared toward driving innovation and analysis in each sector by way of our universities, analysis establishments, artistic trade initiatives and so forth.

• Mild manufacturing: The apex financial institution plans to arrange a N500 billion intervention fund over a medium, and focused at manufacturing companies for the procurement of state-of-the-art equipment and tools and automatic manufacturing fashions that would quick monitor native manufacturing. It’s going to additionally assist improve the patronage of domestically processed merchandise.

CBN intends to shut the funding hole wanted for the alternative of equipment and tools so as to improve native manufacturing.

MARCH 30, 2020

* The Federal Authorities additionally gave a directive that each one financial and social actions in Ogun, Lagos States and Federal Capital Territory ought to be suspended for 2 weeks. The lockdown affected the motion of individuals throughout the states, aside from folks within the important providers sectors.

• CBN suspended the clearing of all cheque devices within the Nigerian Clearing System. Based on the financial institution, the directive was supposed to “guarantee hitch-free clearing and settlement actions” in the course of the earlier 14-day lockdown.

CBN’s suspension was primarily based on the sooner envisaged two-weeks lockdown which was later prolonged to about 5 weeks.

MARCH 27, 2020

CBN and the Banker’s Committee fashioned the Nigerian Personal Sector Coalition In opposition to COVID-19. The apex financial institution defined that the coalition was in partnership with the non-public sector, led by Aliko Dangote Basis and Entry Financial institution.

MARCH 25, 2020

Following the request of the Affiliation of Bureau de Change Operators of Nigeria (ABCON) to declare market vacation on its members’ weekly bidding, the CBN suspended the gross sales of overseas trade to operators of Bureau de Change.

MARCH 24, 2020

The Financial coverage committee unanimously voted to:
• Retain the MPR (Financial coverage Charge) at 14%.
• Retain the uneven hall at +200/-500 foundation factors.
• Retain the CRR (Money Reserve ratio) at 27.5% and retain liquidity ratio at 30%.

MARCH 20, 2020

• The CBN formally devalued the naira by 15% shifting from N307/$1 to N360/$1. Depreciation on the “market-determined” I&E window is 5%, having moved from N360/$1 to N380/$1.

• CBN bought {dollars} to banks at N380/$1 in a transfer signifying a devaluation of the foreign money. Banks buying and selling on the Investor and Exporter (I&E) window purchased {dollars} at N360/$1 from the CBN on Friday, March 20, 2020. The I&E window is the official market the place foreign exchange is traded between banks, the CBN, overseas traders, and companies

Supply: nairametrics.com