All Loans Given Under Our Intervention Funds Must Be Fully Repaid -CBN

The Central Bank of Nigeria on Tuesday said that all the various intervention funds so far disbursed to enable households and businesses cushion the negative impact of Covid-19 would be fully repaid.

The Director, Corporate Communications Department, CBN, Mr Isaac Okorafor said this during an interview on TVC Business Programme monitored by our Correspondent.

The CBN had on March 18 announced over N1.1tn intervention fund to support critical sectors of the economy.

Out of the over N1.1tn, about N1tn was to be used to support the local manufacturing sector as well as boost import substitution.

Also N100bn was set aside to support the Health Authorities to ensure laboratories, researchers and innovators work with global scientists to patent and produce vaccines and test kits in Nigeria, while N50bn was earmarked to support small businesses and households.

The CBN Governor, Mr Godwin Emefiele had on Monday while speaking on the impact of the fund said over N152.9bn had been disbursed to 61 manufacturing company out of the N1trn allocated for that sector.

He also said 20 healthcare projects have been funded to the tune of N26.27bn out of the N100bn earmarked for that segment of the economy.

Out of N50bn for the household and small enterprises affected by Covid-19, he said the CBN had disbursed to over 92,000 people the sum of N49.15bn.

Okorafor said the impact of the fund had been massive on the economy, adding that the size of N50bn intervention fund may be increase to accommodate more beneficiaries.

However, he warned that the fund is not a grant, adding that beneficiaries of the fund would be made to repay what they collected based on the terms of agreement.

He said, “I want to let Nigerians know this, these are loans, they are not grant. They are not palliatives that would not be paid back. These are loans that would be paid back.

“So we have details of those who have been given the loans and they really have to pay them back at the appropriate time.

“We are determined to ensure that the impact of Covid-19 does not drag the economy into recession.

“With determination on our side and cooperation of all Nigerians, the economy will bounce back.”

On the creative industry, the CBN Spokesman said the handover of the facility was timely, considering the various challenges facing the country’s economy at the moment.

He said that the renovation of the national edifice would transform the facility into Nigeria’s Creative Industrial Centre.

According to Okorafor, the National Arts Centre will be comparable to other world-class entertainment and convention centres in any part of the world.

He said the activities in the centre which would include music, movies, fashion and ICT, could be a very important source of growth and reduce the dependence on revenues from crude oil.

He pointed out the creative industry has the potential to generate over $20bn annually for Nigeria with its human capital resources and an enabling environment that would harness the creative talents of its youths