Coronavirus: MPC retains all policy rates, supports CBN’s stimulus plan

Central Bank of Nigeria (CBN)
Central Bank of Nigeria (CBN)

Contrary to expectations, the Central Bank of Nigeria Tuesday resolved to retain all the key monetary policy rates.

Amid the growing impact of COVID-19 on the global and Nigerian economy, many financial experts had expected the monetary policy rates to be reviewed in an attempt to reinvigorate the Nigerian economy.

But, at the end of the Monetary Policy Committee (MPC) meeting in Abuja, on Tuesday, members resolved to retain the monetary policy rate (MPR), or the controlling lending rate, at 13.5 per cent, with the asymmetric corridor at +200/-500 basis points around the MPR.

The CBN governor, Godwin Emefiele, who read the communique at the end of the meeting, said the MPC also resolved through a unanimous vote to retain the Liquidity Ratio at 30 per cent, while Cash Reserve Requirement (CRR) was left unchanged at 27.5 per cent.

Mr Emefiele said the decision of the committee to retain the controlling rates was informed by the need to observe the impact of steps already taken under a massive intervention plan to save the economy from COVID-19 pressures.

“Any attempt to adjust the monetary policy fundamentals in any direction – upwards or downwards – will distort and undermine the effort already made through the recent N3 trillion stimulus plan by the Central Bank,” Mr Emefiele said.

He said the impact of COVID-19 was not only capable of plunging the world into a health crisis, but also instigating a major economic crisis.

COVID-19 Stimulus plan

A fortnight ago, the apex bank unveiled the first set of interventions to cushion the negative impact of the deadly coronavirus on Nigerian businesses and the economy.

The bank governor said the interventions included a cut in the interest rates of all applicable CBN intervention facilities from 9 per cent to 5 per cent per annum effective March 1, 2020.

Also, the intervention included the creation of a N50 billion targeted credit facility for small and medium scale enterprises as well as households impacted by the COVID-19 pandemic.

The apex bank also announced a grant of a further moratorium of one year on all principal repayments, particularly intervention loans, effective March 1, 2020.

Coronavirus factsheet


PT Mag Campaign AD

All rights reserved. This material and any other material on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from PREMIUM TIMES.

Support PREMIUM TIMES' journalism of integrity and credibility

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.


TEXT AD: To advertise here . Call Willie +2347088095401...

BE THE FIRST TO KNOW! Subscribe to our newsletter

* indicates required


Now available on

  Premium Times Android mobile applicationPremium Times iOS mobile applicationPremium Times blackberry mobile applicationPremium Times windows mobile application