CBN disburses N94.34bn COVID-19 healthcare funds

CBN will process and disburse funds to the PFI for further distribution to the project
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Central Bank of Nigeria (CBN), Governor Godwin Emefiele

Summary

The Central Bank of Nigeria has disbursed N94.34 billion of the N100 billion credit intervention for the healthcare sector that it announced as part of its steps to alleviate the economic impact of the coronavirus pandemic.

This was revealed in the CBN's recent Monetary Policy Committee meeting paper, which was presented in Abuja by the CBN Governor, Mr Godwin Emefiele.

Part of its report read,

“Under the N100bn Health Care intervention Fund, the bank has disbursed N94.34bn, and is willing to expand the facility to 85 projects in the pharmaceutical industry, hospitals and state governments for both brown field and green field projects, mostly to expand pharmaceutical drug lines, acquire MRI and other equipment and upgrade laboratories and other hospital services,” he said.

The apex bank had previously defined the conditions for gaining access to the funds.

According to the CBN's guidelines, a corporate entity must apply an application to a participating financial institution, which may be a Deposit Money Bank or a Development Finance Institution of its choosing, with a bankable business plan.

It stated in its most recent guidelines that the PFI would appraise and perform due diligence on the application, and that the application would be submitted to the apex bank with relevant documents attached after approval by the PFI's credit committee.

The CBN will process and disburse funds to the PFI for further distribution to the project, according to the statement.

According to the CBN, the PFI must accept and review customer applications, perform due diligence based on usual business considerations, and bear credit risk.

They must also send offer letters to eligible applicants and forward qualified applications to the CBN; disburse the released funds to successful applicants; track the project and recover loans from beneficiaries; and keep proper records of all beneficiaries and facilities.

It mandates that PFIs register all movable assets with the National Collateral Registry, submit periodic returns to the CBN in the specified format of the scheme, follow the guidelines, and perform any other duties that the CBN may impose from time to time.