In response to the COVID-19 pandemic the Central Bank of Nigeria (CBN) said it disbursed N253 billion to 548,345 beneficiaries comprising 470,969 households and 77,376 Small and Medium Enterprises (SME’s) in Nigeria.

The Acting Director, Corporate Communications Department of the apex bank, Mr. Osita Nwanisobi disclosed this while speaking at the CBN’s special day at the ongoing 42nd Kaduna International Trade Fair.

Mr. Nwanisobi said the bank also reduced its interest rate on CBN intervention loans from 9 to 5 percent and initially created a N150 billion Targeted Credit Facility (TCF) for affected households and SME’s through the NIRSAL microfinance Bank.

Represented by the Branch Controller, Kaduna, Ahmed Mohammed Wali, Nwanisobi said the fund has since been increased in order to accommodate more beneficiaries, boost consumer expenditure and positively impact output growth.

 “As part of the Bank’s responses to the pandemic in Nigeria, the CBN approved a one-year extension of moratorium on principal repayments for its intervention facilities; in addition to granting Regulatory Forbearance to banks to restructure loans given to sectors that were severely affected by the pandemic.

“We equally raised the Loan-Deposit Ratio (LDR) from 60 percent to 65 percent, to encourage more lending by banks. The Bank also reduced the interest rate on CBN intervention loans from 9 to 5 percent and initially created a N150 billion Targeted Credit Facility (TCF) for affected households and small medium enterprises through the NIRSAL Microfinance Bank.

“The fund has since been increased in order to accommodate more beneficiaries and boost consumer expenditure which should positively impact output growth. This resulted in the disbursement of N253.4 billion to 548,345 beneficiaries comprising 470,969 households and 77,376 Small and Medium Enterprises (SMEs).”