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Financial institutions to fund N1.8tn COVID-19 stimulus package

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Finance
Minister of State for Budget and National Planning, Mr Clem Agba

The federal government has announced that financial institutions would fund the COVID-19 economic stimulus package of N1.8tn of its N2.3tn.

The government also noted that about N288bn from the N500bn of the package funded through the 2021 budget has so far been released, adding that it was currently in the process of releasing a second batch.

This was disclosed by the Minister of State for Budget and National Planning, Clem Agba, on the side-lines of the National Steering Committee meeting of the Nigeria Open Government Partnership in Abuja.

Speaking on measures adopted to salvage the economy from collapse as a result of the impact of the COVID-19 pandemic, Agba said the N2.3tn stimulus package had to be deployed.

According to him, “And there are basically two sources of funding the N2.3tn. The first N500bn had to come from special accounts, which were embedded in the revised budget.

 “And then the other N1.8tn, which has programmes that were set up to be financed through the financial institutions.

“And we had negotiated a five per cent interest rates with a one year moratorium just to ensure that we are able to grow agriculture, look after the MSMEs and support the aviation sector.”

“We also made some provisions for the states for their survival. Like you know, the states had some bailout funds that they got from borrowings.

“We had to stop the repayment, both the principal and the interest for a year. These are measures that had to be taken to get the economy going.”

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