CBN targets healthcare, manufacturing in three-year economic stimulus plan

The Central Bank of Nigeria has unveiled a three-year COVID-19 economic stimulus plan to guide the economy on the path of recovery.

In a 27-paged document seen by TheCable on Tuesday, Godwin Emefiele, governor of the apex bank, said the outbreak is an opportunity for Nigeria to “look inwards as a nation and guarantee food security, high quality and affordable healthcare, and cutting-edge education” for citizens.

Quoting the global trade alert team at the University of St. Gallen in Switzerland, the apex bank said 75 countries have placed 102 restrictions on the export of critical medical supplies.

Emefiele said policies of the bank that have been termed protectionist are targeted at compelling “change in patterns of trade” for the greater good citizens.

He said the apex bank has already provided a combined stimulus package of N3.5 trillion to households, businesses, manufacturers and healthcare providers.

Other immediate-term policies listed by the bank in the policy document include the reduction of the interest rate of its intervention programmes to 5% from 9% and allowing financial institutions restructure loan terms for businesses affected by the outbreak.

The short-term policies listed by the apex bank includes:

• Expand interventions in the manufacturing sector and ensure the incorporation of locally-sourced raw materials in the production process except where they are ‘only available overseas’
• Get banks to finance healthcare projects that will reverse medical tourism in Nigeria
• Establish InfraCo, an infrastructure development vehicle with a proposed take-off capital of N15 trillion and managed by an independent infrastructure fund manager, to build transport infrastructure required to move agriculture produce to processors and finished goods to markets
• Prioritize FX provision for the importation of machinery and critical raw materials needed to drive a self-sufficient economy

Medium-term policies listed by the bank are:

• Focus on light manufacturing, affordable housing, renewable energy, and cutting-edge research by educational institutions
• Pursue economic renewal including replacing 25% of existing manufacturing machinery with an initial intervention of N500 billion
• Provide interventions in housing development, mortgage finance and institutional capacity
• Pursue the creation of a fund that will target housing construction for developers that provide evidence of profiled off-takers with the financial capacity to repay using the information provided during the bank verification number (BVN) registration to verify off-takers
• Drive innovation and research in universities, research institutions and creative industry initiatives