Business
COVID-19: Banks Pledge To Sacrifice Profit
Back N3.5 Trillion Stimulus Plan
By Emmanuel Aziken
The nation’s top bankers at an extraordinary meeting on Saturday resolved to prioritise preserving the country’s financial stability above profits in the light of potent threats from the raging coronavirus pandemic.
Governor Godwin Emefiele who disclosed this at the end of the rare Saturday meeting between the Central Bank and the Bankers’ Committee also disclosed plans to support the pharmaceutical industry towards producing required drugs to tackle the pandemic.
Besides, the bankers also gave full backing to the N3.5 trillion stimulus plans earlier unfolded by the apex bank.
Governor Emefiele, who chaired the meeting and read the communique, listed the companies to include, but not limited to, Emzor, Fidson, GSK, May & Baker, Unique Pharma, Swiss Pharma, Neimeth, Sagar, Orange Drugs, and Dana Pharma.
Meanwhile, Mr. Emefiele said the industry had also resolved that profit would not be the primary motive at this time.
According to him, the Bankers’ Committee took the decision to support the pharmaceutical companies given the fact that the present pandemic was of grave public health concern, coupled with the fact that many drug-manufacturing countries planned or had already banned the export of drugs and medical supplies from their respective countries, thereby leaving Nigeria no choice but to produce the drugs locally.
Mr. Emefiele further disclosed that the CBN and the Bankers’ Committee had resolved at this time to collaborate with one coherent strategy to provide confidence to the customers, counter parties, the public and ultimately putting Nigeria first.
While disclosing that engagements will be held with correspondent banks, trade creditors, trading partners regarding existing letters of credit and trade commitments, the CBN Governor assured that the industry was committed to resolving all existing commitments in a comprehensive and orderly way.
Meanwhile, Mr. Emefiele said the industry had also resolved that profit would not be the primary motive at this time. “Rather, preserving confidence, financial stability and support for the economy will be the overriding objectives,” he added.
Considering the disruptions to global supply chains, the CBN Governor and the Bankers’ Committee advised Nigerians and companies to prioritize their import needs and focus more on sourcing raw materials and input locally.
To improve foreign exchange supply to the CBN, the Bank has directed all international and domestic oil companies and related companies such as oil servicing companies to sell foreign exchange to the CBN and no longer the Nigerian National Petroleum Corporation (NNPC).
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