COVID-19: CBN Disburses N369bn To SMEs, Manufacturers, Others
Unveils N200bn Loan For FG’s Social Housing Project
By Our Correspondent
The Central Bank of Nigeria on Tuesday outlined the disbursements it had so far made in various sectors of the economy to cushion the adverse impact of the COVID-19 pandemic. According to the bank, about N369 billion has been disbursed to small and medium businesses, manufacturers, pharmaceutical companies, among others, under different financial support schemes of the CBN.
The CBN Governor, Godwin Emefiele, reeled out the interventions of the bank while speaking at the 13th Annual Banking and Finance Conference in Abuja.
He said the bank created the N100 billion target credit facility for households and small and medium enterprises affected by the COVID-19 pandemic through the Nirsal Microfinance Bank. Emefiele said, “Initially, we planned for N50 billion to be disbursed but we saw that there was more and more need from households and small businesses that were impacted by the pandemic. “The CBN took the decision to increase the size of that intervention from N50 billion to N100 billion. To date, close to about N69bn of this fund has been disbursed to over 140,000 households and businesses.” The governor said a N100 billion intervention fund in loans to pharmaceutical companies and healthcare practitioners intending to expand and strengthen the capacity of healthcare institutions was also created.
Meanwhile the CBN has said it will release a cumulative maximum limit of N200 billion to provide construction finance facility to enable Family Homes Funds Limited to implement the Federal Government’s Social Housing programme as part of the Economic Sustainability Plan 2020. The CBN disclosed this on Tuesday in a report on ‘Framework for the implementation of family homes financing initiative’. Part of the report read, “Funds would be released to FHF on project basis subject to the cumulative maximum limit of N200 billion.
“A project is defined as cluster of homes in the same geographical location and covered with the same title documents and approvals.”
According to the CBN, mass housing construction is among the key economic activities with potential to create significant number of jobs rapidly.
“It is in the light of this that the bank introduces this financing initiative to support the Federal Government’s Economic Sustainability programme to fast track the deployment of 300,000 homes in the 36 states of the federation and the Federal Capital Territory and to create up to up to 1.5 million jobs in five years,” it said.
The CBN said the initiative was to be implemented in collaboration with Family Homes Fund Ltd as the lead developer and eligible obligor.
