The Central Bank of Nigeria and the bankers’ committee have agreed to back a N3.5 trillion stimulus package for the Nigerian economy. According to an excerpt from a communique seen by Newscorner, the Bankers’ Committee also gave its full support to the policy measures amounting to over N3.5 Trillion earlier announced by the CBN in response to the economic impact of the COVID-19 on Nigeria.

The CBN had during the week disclosed that it would support critical sectors of the economy with N1.1 trillion intervention fund. This was stated by the Godwin Emefiele, Governor of the apex bank on Wednesday in a statement.

In the statement, Emefiele explained that out of the N1.1trillion, about N1trillion would be used to support the local manufacturing sector as well as boost import substitution. He added that the balance of N100 billion would be used to support the Health Authorities to ensure laboratories, researchers and innovators work with global scientists to patent and produce vaccines and test kits in Nigeria.

However, following the bankers’ committee meeting on Saturday, it appears the Nigerian economy will be receiving an economic stimulus of about N3.5 trillion. The communique did not explain how the funds will be disbursed but pledged to grant funding facilities (in Naira and foreign exchange) to pharmaceutical companies in the country to enable them to procure raw materials and equipment to boost local drug production in Nigeria.

The CBN did not reveal where it plans to get the N3.5 trillion it plans to inject into the economy as a stimulus. However, it did mention that the N1.1 trillion will be disbursed as intervention funds. Past intervention funds have been issued from the central bank’s balance sheet as part of its developmental programs. This could sometimes involve some of quantitative easing, an economic term for printing of money.

It appears the balance N2.4 trillion might have to come from commercial banks in the form of loans to small businesses and the manufacturing sector.