Economy, Nigerian economy, Monetary policy, Covid-19


This article presents the dynamics of an unholy trinity involving the interplay of economic forces in the thick of a crippling health crisis with monetary policy to the rescue through activation of relevant instruments. In response to the outbreak, the Monetary Policy Committee announced several policy measures which include granting of extension of loan moratorium on principal repayments, interest rate reduction on all intervention loan facilities from 9% to 5%, establishment of a N50bn targeted credit facility to household and MSMEs and regulatory forbearance to banks and credit support to the healthcare industry among others. it is worthy to state that monetary policy alone cannot solve the economic problems caused by COVID-19 pandemic in Nigeria, but the Central Bank of Nigeria (CBN) needs to work alongside other critical players beyond the financial sector and ensure pragmatic policies that strive towards diversication towards agriculture, strong protection for jobs through support to small and medium-sized enterprises, and enhancement of the existing support to the health sector among others.

Author Bio

The author is an Assistant Director with the Governor's Department of the Central Bank of Nigeria

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