To mitigate the impact of COVID-19 on the economy, the Central Bank of Nigeria reverted its five percent intervention loans provided before July 20, 2022, to nine percent effective as of September 1, 2022.
This was stated in a circular sent to all banks and other financial institutions by the director of the financial policy and regulation department, Chibuzo Efobi, headlined “Adjustment of interest rate on all Central Bank of Nigeria interventions.”
Interest rates on intervention loans issued after July 20 were kept at 9% by the banking regulator.
In the circular, it was mentioned that, “Further to our circular dated March 15, 2022 (Ref: FPR/DIR/PUB/CIR/001/040) extending the period of interest reduction to all intervention facilities from nine per cent to five per cent per annum (as part of measures to mitigate the negative impact of COVID-19 pandemic on the Nigerian economy), the Central Bank of Nigeria hereby reverts the interest rate on all its intervention facilities to nine per cent per annum”.
It should be recalled that the CBN lowered the interest rates on its intervention facilities from 9% to 5% in March 2020 as part of attempts to curb the COVID-19 outbreak.
- Tags: #9% interestloan, #CBN
