COVID-Linked Loan Relief Is Suspended by CBN, and Interest Rates Are Raised to 9%

FastNews reports that the interest rates on all applicable intervention facilities have been raised from 5% to 9% annually, according to the Central Bank of Nigeria.

As part of policies to lessen the detrimental effects of the fatal coronavirus on Nigerian enterprises and the economy, the bank announced a one-year reduction in interest rates on all of its intervention facilities from 9% to 5% during the pandemic in 2020.

The bank reported having over N3 trillion in various intervention programs administered through commercial banks at the time.

Anchor Borrowers, Commercial Agricultural Credits Scheme, Micro-Small and Medium-scale Enterprise, and Agri-Business/Small and Medium Enterprise Investment Scheme (AGSMEIS) are examples of such programs.

Following our circular dated March 15, 2022 (Ref: FPR/DIR/PUB/CIR/001/040) extending the period of interest reduction to all intervention facilities from 9% to 5% per annum (as part of measures to mitigate the negative impact of the COVID-19 pandemic on the Nigerian economy), the Central Bank of Nigeria hereby reverts the interest rate on all its intervention facilities to 9% per annum,” the letter stated.

“The reversed rates will be implemented as follows: all new intervention facilities granted after July 20, 2022, will be at a 9 percent annual rate; all existing intervention facilities granted before July 20, 2022, will be at a 9 percent annual rate effective September 1, 2022.”