Covid-19: Lagos Announces Plan To Share Foods For 200,000 Households

Lagos State has announced its plans to distribute food items to 200,000 households in the state as part of its palliative and stimulus package to help Lagosians cushion the effect of the lockdown in the efforts to contain the spread of the novel coronavirus in the state.

Governor Babajide Sanwo-Olu, who disclosed this on Friday said the stimulus, which comes in food packs, to be distributed to every local government in the State is aimed at cushioning the effect of the fourteen days stay-at-home directive.
He said economic stimulus will reduce the burden of the temporary economic downturn on the citizens caused by the outbreak of COVID-19.
The Governor said the food packs, which were put together by the Ministry of Agriculture and Cooperatives will reach the most vulnerable communities and households across Lagos, saying that the indigents who rely on daily wages will be given priority.
‘‘We are here for an on-the-spot assessment, of our readiness, to see how we can fast track some of our stimulus package for our citizens. 

"We are all aware that this is a trying time for our citizens and since the partial drop in economic activities, our government deemed it necessary to reach out to the vulnerable ones in the society. "These people are those that fall below the pyramid, the aged and the physically challenged who need to move from one part of the city to another for them to have a living. We felt that as a government, the least we can do is to identify them and give them these stimulus packages immediately," Sanwo-Olu said while inspecting the items at the premises of the state agricultural ministry.
He said the package will touch at least 200,000 thousand households in the first phase, saying the food packs are produced for a size of six people per household and would last for at least fourteen days.
“We have packaged dry food stimulus for about two hundred thousand families in the first instance for a household of husband, wife and about four children. 

"We would be giving bags of rice, bags of beans, garri, bread, dry pepper and we are trying to see if we can add water and some elements of vitamin C. Each ration, we believe is going to be able to last them at least minimum 14 days just so our advocacy around stay at home, stay with your loved ones will be respected.
“This is a catalytic initiative of our administration with the hope that well-meaning corporate organisations and private individuals can step up to complement the efforts of the government’’ Sanwo-Olu said.

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CBN MPC Report

The MPC noted the continued resilience of the banking system, evidenced by the further moderation in the ratio of Non-Performing Loans (NPLs) from 6.59 percent in January to 6.54 percent in February 2020. Although the ratio remained above the prudential benchmark of 5.0 percent, the Committee expressed confidence in the Bank’s regulatory regime and commitment to maintaining stability in the banking system.

On the domestic front, available data on key macroeconomic variables indicate the likelihood of subdued output growth for the Nigerian economy in 2020.  Based on the current downturn in oil prices, staff projections indicate that output in the 2020 would be less than earlier envisaged. The major downside risks to this outlook, however, include: the continued spread of COVID-19; further decline in crude oil prices and the reduction in accretion to external reserves; reduced government revenue leading to weak aggregate demand; declining non-oil receipts; as well as infrastructural and security challenges. These headwinds will, however, be partly mitigated by: the timely and effective response of the monetary and fiscal authorities in containing the spread of the COVID-19 viral infection, the recalibration and adjustment of the 2020 Federal Budget to the revised thresholds while pegging expenditure to critical sectors of the economy, adoption of a new fiscal regime to encourage the build-up of fiscal buffers; sustained CBN interventions in selected sectors; enhanced flow of credit to the real sector and deliberate policies to diversify the Nigerian economy.

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CBN Devalues Naira by 17.26% To N360/$, External Buffer Down $35.9 Bln

The Central Bank of Nigeria (CBN) on Friday officially devalued the nation’s currency at both the official window and the Investors’ & Exporters’ (I&E) FX Window to reflect the reality and conditions of the marker, a top banker told Global Financial Digest.
The regulatory bank has moved the official rate to N360 to the dollar from N307 per dollar previously and now selling dollar to foreign portfolio investors (FPI) at N380.20 at the I&E window from N366 per dollar previously.
Also, the CBN has effectively moved the rate for the bureau de change segment of the market to N380 to the dollar, while the operators are expected to buy dollar from the CBN at N378 per dollar, according to a circular sent to the BDC operators by the apex bank.
With this action, the regulatory bank has effectively unified the foreign exchange rates in the market in line with the recommendations of the International Monetary Fund (IMF).
In the circular sent to BDC, the CBN said proceeds from the International Money Transfer Service Operators (IMTOs) to banks will hence be traded at N376 per dollar, while from banks to the CBN, the rate will now go for N377 per dollar.
The CBN said it will now sell dollars to the BDC at N378 to the dollar while the BDC operators will sell to end-users at N380 to the dollar.
“Please be advised that the applicable exchange rate for the disbursement of proceeds of IMTOs for the period Monday, March 23 to Friday, March 27, is as follows,” the CBN circular signed by the director of Trade and Exchange, O.S Nnaji stated.
There have been speculations in the market in recent time that the CBN may devalue the currency in view of the impact of the Coronavirus and the sharp drop in global oil prices.
The unification of the exchange rate has effectively end almost three years of multiple exchange rates in the market.
Before now, the country has about five different exchange rates; one for offshore investors at I&E window, the other for the official window, another one for the interbank, while the bureau de change operators rate was also different from the rest.
A top banker said: “This is a devaluation. It might also lead to convergence of rates. The question is, is it enough?”
“Today, it is still difficult to buy funds from the market at 380. So let’s see how it goes,” the banker who preferred anonymity told one of our correspondents.
Nigeria’s external forex reserves fell $35.94 billion by March 19, from $38.53 billion, representing a 6.72 percent drop year-to-date.
“The best approach has always been allowing the market to decide. The market will move the price to a level that will create an equilibrium price for both demand and supply and that price that will be appropriate for the market at this point in time considering the environment,” the senior banker said.
He, however, noted that If there is an overreaction to the latest move, the market will correct itself. The CBN May step in extreme volatility to calm the markets by providing supply.

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