The Central Bank of Nigeria(CBN) has reduced the interest rates on its intervention facilities from nine per cent to five percent per annum for one year effective March 1,2020.
In a circular to all banks and other financial institutions (OFIs), dated March 3, 2021 and signed by the Director, Financial Policy and Regulation Department, Dr Kevin Amugo, the apex bank said the reduction in interest rates was part of measures to mitigate the negative impact of COVID-19 pandemic on the Nigerian economy.
According to CBN, Credit facilities availed through participatory banks and OFIs, were also granted a one year moratorium on all principle payments with effect from March 1,2020.
The apex bank added that following the expiration of the timelines, it has therefore approved “the extension by another 12 months to February 28,2022 of the discounted interest rate for the CBN intervention facilities.”
“The roll-over of the moratorium in the facilities shall be considered on a case by case basis.
“Further inquiries on the provisions of the circular may be addressed to the Director, Development Finance Department,” it added.