CBN extends discounted interest rate for its intervention facilities by 1yr

The proportion of secured loan applications approved decreased as lenders try to manage their risk exposure.

The Central Bank of Nigeria (CBN) on Wednesday extended the discounted interest rate for its intervention facilities by another 12 months to February 28, 2022.

In a circular to all banks and other financial institutions (OFIs), signed by Kevin Amugo, director, financial policy and regulation department, the CBN said the rollover of the moratorium on loans granted through banks and OFIs shall be considered on a case by case basis.

On March 1, 2020, the CBN reduced the interest rates on its intervention funds from 9 percent to 5 percent per annum for one year period.

The reduction was part of measures to mitigate the negative impact of Covid-19 pandemic on the Nigerian economy.

Also credit facilities availed through participating banks and OFIs were granted a one-year moratorium on all principal payments with effect from March 1, 2020.

BusinessDay reported five days ago that Monetary Policy Committee (MPC) members wanted the CBN to extend loan forbearance by 12 months.

“I am supportive of extending this forbearance by an additional twelve months, which would enable Deposit Money Banks (DMBs) to continue providing reprieve to households and businesses through lower interest rates and repayment moratoriums,” Kingsley Obiora Isitua, MPC member, said in a personal statement.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.