NIGERIA: CBN Urge Banks to ‘Support’ Media, Aviation Industries to Avert Growing Job Losses

Considering that the aviation industry is one of the worst hit  by the COVID-19 pandemic, Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has advised Nigerian banks to support the media and aviation sectors through loan disbursements.

This is in view of the lingering Coronavirus pandemic which has wrought major economic havoc across different sectors, leading to revenue declines and multiple job losses.

Also in order to boost export Mr. Emefiele announced plans to hold a meeting with chief executive officers of multinational companies.

Addressing the Bank Chief Executives at the bi-monthly virtual meeting of the Bankers’ Committee on Tuesday, August 25, 2020, Mr. Emefiele urged the banks to do all within their powers to support airlines in the country, noting that such support was critical to helping the industry recover from the economic crisis triggered by the COVID-19 pandemic and to avoid massive job loss both in aviation and media industry.

CBN had in the advent of the coronavirus in Nigeria, announced a N1.2 trillion intervention funds to support critical sectors of the economy, N1 trillion of which was to support local manufacturing sector and to boost import substitution.

The remaining N100 billion of the intervention fund was to support the health sector in equipping laboratories and enhancing research to produce vaccines and test kits in Nigeria.

The bank, also in March 2020, unveiled guidelines for the implementation of a N100 billion Targeted Credit Facility (TCF) as a stimulus package to support households and micro, small and medium enterprises affected by the COVID-19 pandemic.

Talking about impact of the pandemic on aviation,local and international flight were suspended for more than three months, as planes were grounded in a bid to curtail the spread of the deadly Coronavirus.

Nigeria’s major carrier Air Peace  earlier this month announced layoff of about 70 pilots and staff salaries reduction by 40%. While  the management of Bristow Helicopters Limited also announced the sack of about 100 pilots and engineers. Bristow’s announcement came barely 24 hours after Air Peace’s announcement.

Now, as planes resume flights, CBN’s Emefiele wants banks to do all that they can to avail airlines the financial support they need to bounce back.


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