Business
COVID-19: CBN Unveils N15trn Capital For Infrastructure Development
The Central Bank of Nigeria (CBN) has unveiled plans to float an infrastructure development firm to be named InfraCo Plc with an equity take-off capital of N15 trillion to support the government’s transport infrastructural development.
The Apex Bank Governor, Godwin Emefiele who made this known in a 27-page policy response timeline document, said the establishment of InfraCo PLC with combined debt and equity take-off capital of N15 trillion was created to solely focus on infrastructure development as the country works towards mitigating the impact of COVID-19 on the economy.
Emefiele noted that the immediate-term policies would span an initial period of three months.
“The CBN has issued a support guideline on low-interest loans to hospitals and the pharmaceutical industry, to immediately deal with the public health crisis caused by the COVID-19 pandemic.
“Under this immediate-term response, we have activated financial system stability by granting regulatory forbearance to banks to restructure terms of facilities in affected sectors; triggered banks and other financial institutions to roll-out business continuity processes to ensure that banking services are delivered in a safe social-distance regime for all customers and bankers; grant additional moratorium of 1 year on CBN intervention facilities, and reduce interest rates on intervention facilities from 9 to 5 percent,” the CBN governor said.
He added that the 12-month short-term policy priorities which covers the establishment of InfraCo PLC, a world-class infrastructure development vehicle and a host of other initiatives will ensure that the value-added sector like the manufacturing industry, will be strengthened to reposition the Nigerian economic space.
