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CBN health intervention fund gets new interest rate by March 2021

The CBN said that interest rate on its health intervention facility shall revert back to 9% p.a. (all-inclusive) as from 1st March 2021. 

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CBN health intervention fund gets new interest rate by March 2012, Nigerian banks’ non-performing loans drop significantly by 41% in 2019, External reserves decline by over 8% in 3 months, Nigeria’s external reserves increase by $1.36 billion in 13 days

The Central Bank of Nigeria (CBN) had on Thursday said that interest rate on its health intervention facility, which was reduced to 5% over a week ago, shall revert to 9% p.a. (all-inclusive) as from 1st March 2021.

The CBN had introduced a N100 billion credit support intervention for the health sector as part of the measures to mitigate the effect of the Coronavirus pandemic on the economy.

As a follow-up, the apex bank, on Thursday issued operational guidelines for credit support to the healthcare sector for indigenous pharmaceutical companies and healthcare practitioners that hope to build or expand their capacity.

The operational guideline, which was signed by Kevin Amugo, Director, Financial Policy and Regulation, CBN, stated that interest rate under the intervention shall be at not more than 5% per annum, (all-inclusive) and is valid up until February 28, 2021.

[READ MORE: CBN suspends forex sales to BDC operators till further notice)

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This scheme is going to be funded from the Real Sector Support Facility – Differentiated Cash Reserves Requirement (RSSF-DCRR).

Rivers health workers embark on indefinite strike over minimum wage

The objectives of the scheme include:

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  • improving access to affordable credit by indigenous pharmaceutical firms in order to expand their operations;
  • reducing medical tourism in order to conserve foreign exchange; and
  • providing long-term, low-cost finance for healthcare infrastructure development that would lead to the evolvement of world-class healthcare facilities in the country, reduce the cost of healthcare delivery in the country and so on.

Stakeholders, who are eligible under the scheme are:

  • healthcare product manufacturers which include pharmaceutical drugs and medical equipment;
  • healthcare service providers/medical facilities which include hospitals/clinics, diagnostic centres/laboratories, fitness and wellness centres, rehabilitation centres, dialysis centres, blood banks, etc.;
  • pharmaceutical/medical products distribution and logistics services; and
  • other human healthcare service providers as may be determined by the CBN from time to time.

Financial institutions like the Deposit Money Banks (DMBs); and Development Finance Institutions (DFIs) are ineligible.

The guidelines show that the collateral to be pledged by borrowers under the programme shall be as may be required under the RSSF-DCRR.

[READ ALSO: CBN, private sector form multi billion naira alliance against covid-19)

The apex bank said periodic joint monitoring of activities financed under the Scheme will be conducted by the PFI and the CBN.

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Also, the CBN has issued the guidelines for the implementation of the N50 billion targeted credit facility for households and Small and Medium Scale Enterprises (SMEs that have been particularly hard hit by the Coronavirus.

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The broad objectives of the CBN’s N50 billion Targeted Credit Facility include cushioning the adverse effects of coronavirus on households and MSMEs; supporting households and MSMEs whose economic activities have been significantly disrupted by the coronavirus pandemic; stimulating credit to MSMEs to expand their productive capacity through equipment upgrade, and research and development.

Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

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ENDSARS

Just-in: South-West Governors say attacks in Lagos were attempts to weaken the region’s economy

South West governors have they described the coordinated attacks in the state as an attempt to weaken the region’s economy.

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South-West Governors say attacks in Lagos were attempts to weaken the region's economy

Governors of the South-West states have pledged their supports to their Lagos State counterpart, as they described the coordinated attacks in the state as an attempt to weaken the region’s economy.

This was disclosed by the Chief Press Secretary of the state, Gboyega Akosile, during the visits of the Governors and the Federal Executive Council members from SouthWest to the public assets and private properties destroyed in last Wednesday’s arson in the state.

He tweeted, “Shock! This was the expression on the faces of the Federal Executive Council (FEC) members from Southwest and Governors as they toured the public assets and private properties destroyed in Wednesday’s coordinated arson in Lagos State.

“The delegation of Governors and Ministers was personally received by Sanwo-Olu at the State House in Marina, where the Lagos helmsman showed them the pictorial evidence of the violence before visiting some of the torched assets.”

At a joint press conference held after the tour, Chairman of Southwest Governors’ Forum and Ondo State Governor, Arakunrin Rotimi Akeredolu, SAN, compared the scenes to a war zone, given the extent of the destruction.

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According to him, the violence that resulted from the EndSARS protest left much to be desired, stressing that there was an agenda beyond the youth demonstration against police brutality.

He said, “We are deeply concerned with the ease with which public buildings, utilities, police stations, and investment of our people have been burnt despite the proximity of security agencies in those areas.

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What this means: From all indications, it is obvious that the South-West Governors believed that the said attack, which were rumoured to have been carried out by suspected hoodlums, were sponsored by some people to deliberately disorganize the region’s economy.

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#EndSARS Protest: 80 BRT buses worth N3.9 billion were destroyed by hoodlums – LASG 

The Lagos State Government disclosed that the 84 BRT vehicles destroyed by the hoodlums cost a total of about N3.9 billion.

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#EndSARS Protest: 80 BRT buses worth N3.9 billion were destroyed by hoodlums - LASG 

The Lagos State Government has revealed that 27 of the burnt Bus Rapid Transit (BRT) vehicles in the Oyingbo and Ojodu Berger areas of the state cost $200,000 each, while 57 of them cost $100,000 each, all totaling about N3.9 billion.

This statement was made by the Lagos State Government on Friday, after evaluating the extent of damage made to the Bus Rapid Transit (BRT) vehicles.

READ: Arik, Dana Airlines to resume flight operations after curfew

What you should know

Few days ago, hoodlums hiding under the cover of #EndSARS protests allegedly attacked and razed the Oyingbo BRT terminal, with several buses burnt. Nairametrics reported that Primero Transport Services Ltd (PRT), the owners of BRT buses said they have lost over N100 million in 6 days due to the #EndSARS protests.

READ: Lagos Bus Service records 10 million passengers in 10 months

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The State’s Commissioner for Information, Mr. Gbenga Omotosho, in an exclusive interview with Punch, disclosed that:

  • 23 big BRT buses were razed down, while 57 medium-size BRT buses were affected by the violence, which brings the total of the BRT vehicles destroyed to 80. 
  • 23 of the 80 BRT buses burnt by the hoodlums were at Ojodu, while the remaining  57 were at the Oyingbo area.  
  • The big buses cost around $200,000 each, while the medium-size ones cost around $100,000 each.

READ: #EndSARS: Lagos orders investigation of Lekki Toll Plaza shooting

What they are saying 

Mr. Omotosho said, “As I speak, the Governor and some of us are going around the state from one facility to the other. We are also visiting private facilities. Some of the places were the Oregun Vehicle Inspection Service office, the BRT park at Oyingbo, and the terminus at Ojodu Berger. 

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“I don’t know how they planned it; the hoodlums left the old buses and went for the new ones. The new ones were worth billions of naira. 

READ: Operators of BRT suspend operations on Ikorodu-TBS route

“However, the cumulative losses incurred by the state are not ready yet. But it will be mind-boggling. It came on a scale beyond belief. We know that the police have apprehended suspects.”

What this means

The vehicles were purchased in dollars; So, the consistent decrease in the value of Naira is expected to edge the cost of these buses up, when denominated in Naira. 

The Lagos State Commissioner for Information, Mr Gbenga Omotosho explained that with the current foreign exchange rate, the 80 destroyed BRT buses are now valued at N3.929 billion.

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BREAKING: Lagos State reviews curfew again, now from 8pm to 6am

Governor Babjide Sanwo-Olu has once again reviewed the curfew in the state to now commence between 8 pm to 6 am.

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4 key points in the new Lagos 2020 Land Use Charge, Lagos offers tech founders N250 million seed fund, cuts stringent access , Governor Sanwo-olu launches 14 ferries to tackle gridlock, says Okada ban irreversible, ride-hailing

The Lagos State Governor, Babajide Sanwo-Olu, has further reviewed the curfew earlier imposed on the state to help contain the large scale violence following the hijacked #EndSARS protests against police brutality and extra-judicial killings. The curfew now starts at 8 pm and ends at 6 am daily.

This is coming 2 days after the Governor had eased the 24-hour curfew to start from 6 pm to 8 am daily.

This disclosure was made by the Lagos State Commissioner for Information and Strategy, Gbenga Omotoso, on Sunday, October 25, 2020.

The Commissioner in his statement said, “The curfew in Lagos State has been reviewed. Restriction time is now 8 pm to 6 am. Lagosians are enjoined to plan their journey times as they go about their lawful businesses. Public schools remain shut till further notice.”

What this means

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This new review gives Lagosians an extra 4 hours to go about their daily activities.

What to expect

The Lagos State government will keep on reviewing and relaxing the curfew, as long as the security situation does not spike again.

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Details later…

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