Considering the austere realities of the post lockdown economy, banks are working with businesses to help bridge the tough challenges ahead. This was revealed during a recent webinar held by Dr. Adesola Adeduntan, the Chief Executive Officer of First Bank Nigeria.
The COVID-19 pandemic is estimated to cost the global economy at least $1 trillion in 2020 according to the World Economic Forum (WEF). Back home, weaker oil price and prolonged economic inactivity due to the pandemic has put Nigeria in precarious situation.
Consequently, the International Monetary Fund (IMF) has revised GDP growth projection for the country this year from 2.5% to 2%. For businesses and government, external and internal interventions are needed to quickly bounce back from the slump.
Given the banking sector is also witnessing a sharp decline in return due to slow economic activities among businesses and government, the sector has resolved to ease its corporate customers, by offering moratorium and low interest rates where necessary.
Precisely, to help cushion the adverse effect of the pandemic, the CEO of First Bank Nigeria, Dr. Adeduntan, said banks are now offering working capital to viable businesses to meet core obligations and commitment. He added also that the banks are waiving late repayment charges for debtors who are able to repay loans within 90 days from the due date.