CBN Urges Vigilance to Mitigate Banking Sector Credit Risks Obinna Chima The Central Bank of Nigeria (CBN) has said the anticipated economic damage due to the COVID-19 pandemic requires vigilance to mitigate emerging risks in the banking system. The Deputy Governor,
Financial System Stability Directorate, CBN, Mrs. Aisha Ahmad, said this in her personal statement at the last Monetary Policy Committee (MPC) meeting, a copy of which was posted on the bank’s website yesterday. According to her, the effects
of the pandemic, which has continued to spread, “requires heightened vigilance by the bank to mitigate emerging risks and other complementary measures such as the restructuring of credit lines for existing obligors and provision of liquidity backstops as and
when required to safeguard the financial system.” The deputy governor said stress tests conducted by CBN staff under low to moderate scenarios had revealed that the financial system remained resilient in the face of tightened financial conditions. However,
she stated that under severe stress scenarios, certain vulnerabilities in the system were evident. These, according to her, included reduction in earnings, deterioration in asset quality and decline in capital adequacy.
“The Nigerian economy is facing a significant and unprecedented shock from the COVID-19 pandemic, accentuated by idiosyncratic structural deficiencies. “It must forestall an Continued on page 8
Spare No Resources to Fight Pandemic, IMF Advises Nigeria... Page 5 Thursday 16 April, 2020 Vol 25. No 9138. Price: N250
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Concerns Mount over Treatment of COVID-19 Patients by Private Hospitals Doctor treating patient dies of pandemic Increase contact tracing, flatten the curve, Buhari charges task force FG attains 3,000 daily testing capacity, labs increase to 13 Expands criteria for testing, approval for treatment facility Issues guidelines on use of face masks Cases rise to 407 with 128 discharged, 12 deaths WHO says Trump’s suspension of US aid regrettable Martins Ifijeh in Lagos, Olawale Ajimotokan and Onyebuchi Ezigbo in Abuja Treatment of patients suspected of contracting COVID-19 by private hospitals and other undesignated health facilities has sparked concerns about the danger to public health with many people fearing that it might undermine prevailing
efforts to contain the spread of the rampaging virus. President Muhammadu Buhari had signed COVID-19 Regulations No 2 on Monday, extending the lockdown in the Federal Capital Territory (FCT), Lagos and Ogun States, which started on March 30, by another 14 days. Continued on page 8
Tinubu Wants 5% Budget Deficit Limit Altered
Obinna Chima
The National Leader of the All Progressives Congress (APC), Senator Bola Tinubu, has recommended that the provision of the Fiscal Responsibility Act that prohibits fiscal deficit of more than five per cent budgetary limit should be suspended for the current fiscal year, due
to the injury inflicted on the economy by COVID-19. Alternatively, he said the limit could be raised to between 25 and 30 per cent to boost government spending in order to reflate the economy. Tinubu, who made the recommendation in a paper he wrote titled, “Coronavirus Continued on page 9
TAKING CHARGE... President Muhammadu Buhari holds teleconference with members of the Presidential Task Force on COVID-19 from his office, at the State House, Abuja…yesterday
FG Releases N200bn to Power Sector to Improve Supply... Page 6