Central Bank of Nigeria (CBN) has increased the Targeted Credit Facility (TCF) to N300 billion.
The facility, which is meant for households and small and medium enterprises affected by the COVID-19 pandemic, was initially N150 billion.
The expansion of the credit line is to enable it reach more households and small businesses.
In a ‘Response by the Monetary and Fiscal Authorities to COVID-19’ report released by the apex bank, its Governor, Godwin Emefiele, said the TCF funds were already being disbursed through the NIRSAL Microfinance Bank.
He said already N149.21 billion had been disbursed to 316,869 beneficiaries, adding that given the resounding success of this programme and its positive impact on output growth, the bank decided to double the fund to N300 billion.
The loan disbursements were based on the activity, cash flow, and industry size of the beneficiaries. Each eligible small business can receive a maximum of N25 million while qualified households can access a maximum of N3 million each.
“Given the impact on COVID-19 on key economic variables earlier mentioned, the fiscal and monetary authorities took unprecedented measures to prevent any long-term damage to the growth prospects of our economy,” he said.
According to him, there is one-year extension of the moratorium on principal repayments for CBN intervention facilities and regulatory forbearance was granted to banks to restructure loans given to sectors that were severely affected by the pandemic.
Mr Godwin Emefiele said CBN had also strengthened the Loan to Deposit ratio policy, which resulted in a significant rise in loans provided by financial institutions to banking customers.
“The Agricultural sector continued to record positive growth supported by productivity gains in the sector, interventions by the government, and improved demand for local produce. The Manufacturing Purchasing Managers Index, in the month of November stood at 50.2 points, indicating an expansion in manufacturing activities after six months of contraction,” he added.