Nigeria’s Apex bank, CBN has announced a massive increase in the funds for healthcare providers to 200 billion.
The Central Bank of Nigeria, CBN Governor, Godwin Emiefele disclosed this development on Saturday.
He noted that the expansion of the healthcare intervention funds would not affect:
i. Healthcare providers
iv. Drug and medical equipment manufacturers.
v. Medical facilities providers.
vi. Diagnostic centres/laboratories.
vii. Blood bank centres
viii. Rehabilitation centres.
ix. Fitness and wellness centres.
x. Dialysis centres.
xi. Other health-related service centres.
In this latest health news in Nigeria, it was stated that the funds were raised to N200 billion from N100 billion.
We gathered that the Monetary Policy Committee (MPC) recommended this expansion.
During the grand opening of Duchess International Hospital in Ikeja, Lagos, he added that local health companies will also be benefactors of this expansion.
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The Apex bank leader explained that this would help Pharmaceutical and healthcare companies willing to expand.
He explained further that the fund would aid in controlling the impact of COVID-19 on the economy.
Emiefele added that healthcare providers would be able to meet the increased demands for healthcare products and services during the ravaging COVID-19 pandemic.
He also spoke about the goal of reducing medical tourism. The CBN President said this would be achieved through an increase in private and public investment in healthcare.
Emiefele said the scheme would enhance long-term low-cost finance for healthcare development. This also would lead to the existence of world-class healthcare facilities in Nigeria.
Other eligible benefactors
i. Pharmaceutical/medical products and logistic service providers.
ii. Other human healthcare service provide reviewed by the CBN from time to time.
Emiefele urged the private sector operators to invest in medical facilities to improve access to healthcare in the country.
His words: “Medical tourism puts a huge strain on our foreign reserves, and more importantly, for every $1 billion allocated to medical treatment abroad, there is less than $1 billion that could be available to other critical sectors of our economy.”
The CBN governor said the MPC recognised the importance of its interventions in the manufacturing sector as well as to give support to the medical sector.
“When we started COVID-19 intervention initiatives, the CBN set aside N100 billion to support the healthcare sector, but upon the rise in demand, we have disbursed N107.7 billion, supporting 114 healthcare projects which include medical diagnostics, pharmaceuticals, dental services, eye clinics both private and public hospital – just to mention a few,” he added.
The CBN guideline on the borrowing capacity for each healthcare provider is limited to N2 billion. This is the limit set for providers seeking a loan from the N100 billion funding support.
However, there will be 20 per cent consideration on working capital loans. This would be on the average of three years of the proposed borrower’s turnover. A borrower is entitled to a maximum of N500 million.
Emiefele said that the date for the contracts would expire on December 31, 2030.
He said: “Term loan shall have a maximum tenor of not more ten 10 years with a maximum of a one-year moratorium on repayment. In terms of construction, the tenor shall be determined by the completion date.
“The modalities require that a corporate entity submits its application to a participating financial institution of its choice with a bankable business plan. The participating financial institution shall appraise and conduct due diligence on the application.
“Upon approval by the participating financial institution’s Credit Committee, the application shall be submitted to the CBN with relevant documents attached. The CBN will process and disburse funds to the participating financial institution for onward release to the project.”
Source: The Nations