COVID-19 Wake-up Call: Nigeria's Central Bank Provides N100 Billion Credit Support for the Healthcare Sector "To Discourage Medical Tourism"

 

The Central Bank of Nigeria has announced a N100 billion credit support intervention fund for the Healthcare sector, according to a statement signed and released today by the Director, Financial Policy and Regulation Department of the apex bank, Kevin N. Amugo.

According to the statement, the objectives of the fund are:

1. To reduce health tourism to conserve foreign exchange.
2. To provide long-term, low cost finance for healthcare infrastructure development that would lead to the evolvement of world-class healthcare facilities in the country.
3. To improve access to affordable credit by indigenous pharmaceutical companies to expand their operations and comply with the World Health Organization's Good Manufacturing Practices (WHO GMP); and
4. To support the provision of shared services through one-stop healthcare solution, to enhance competition and reduce the cost of healthcare delivery in the country.

Eligible participants in the scheme are healthcare product manufacturers (pharmaceutical drugs and medical equipment), healthcare service providers/medical facilities (hospitals/clinics, diagnostic centers/laboratories, fitness and wellness centers, rehabilitation centers, dialysis centers, blood banks, etc), pharmaceutical/medical products distribution and logistics services; and other human healthcare service providers as may be determined by the CBN from time to time.

Eligible business activities under the scheme shall include: manufacturing of pharmaceutical drugs and medical equipment; establishment/expansion/upgrade of basic and specialized healthcare facilities; medical/pharmaceutical supplies; manufacturing of medical/pharmaceutical drugs distribution technology; and any other healthcare value chain activity as may be prescribed by the CBN from time to time.

The CBN shall draw the funds for the scheme from the Real Sector Support Facility - Differentiated Cash Reserves Requirement (RSSF-DCRR). And it shall be managed by Deposit Money Banks (DMBs) and Development Finance Institutions (DFIs).

Interest rate under the scheme will be 5% (up till February 28, 2021), after which it will revert back to 9% per annum as from March 01, 2021. 

For more information and guidelines for participation, please download and read the official circular from the CBN.