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CBN extends 5% loan interest tenure by twelve months


The interest rate forbearance given to individuals and businesses seeking loan from the Central Bank of Nigeria (CBN) has been extended by the financial regulator – the second time in a row.

Ripples Nigeria had previously reported that the CBN had cut its loan interest rate down to 5% from 9% after COVID-19 outbreak in 2020, which affected the earnings and liquidity of businesses in Nigeria.

The reduction was made to boost the capital position of the private sector, in a bid to support the gross domestic product, and prevent the economy from a decline due to COVID-19 shock to global trade.

It was gathered that the reduced interest rate was meant to return to 9% by March 2021, but it was extended for another year. In a recent circular to banks, seen by Ripples Nigeria on Thursday, dated February 28, 2022, the 5% rate is expected to continue for one more year.

READ ALSO: CBN fines three banks N800m for crypto transactions

“Further to our circular dated March 3, 2021 (Ref: FPR/DIR/PUB/CIR/01/001) on the above, the Central Bank of Nigeria (CBN) hereby extends the 5% per annum interest rate on all CBN intervention facilities for one year. This takes effect retrospectively from the 28th of February 2022.” the circular reads.

This means banks offering CBN credit facilities to Nigerians have been prevented from servicing the apex bank loans by 9% in the next twelve months. This comes at a time Non-Performing Loans ratio (NPLs) dropped from 4.9% reported in December 2021, to 4.84% in February 2022.

The post CBN extends 5% loan interest tenure by twelve months appeared first on Latest Nigeria News | Top Stories from Ripples Nigeria.


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48 CommentsDrop a Comment
  1. Mubaraklag

    - May 7, 2022 at 4:26 am

    Nice

    Reply
  2. Dylan Rooney

    - Apr 12, 2022 at 3:37 am

    View

    Reply
  3. Folukemi1234

    - Apr 11, 2022 at 4:05 pm

    Seen

    Reply
  4. Sunshine007

    - Apr 10, 2022 at 11:56 am

    Alright

    Reply
  5. Folukemi1234

    - Apr 9, 2022 at 3:18 pm

    But they didn’t make the available for everyone

    Reply
  6. Abson Ismail ngulde

    - Apr 9, 2022 at 9:52 am

    Okay

    Reply
  7. gizzy

    - Apr 9, 2022 at 7:07 am

    Thanks for the update

    Reply
  8. Oluwagbemiga

    - Apr 9, 2022 at 7:06 am

    Ok

    Reply
  9. Effulgentjoe

    - Apr 8, 2022 at 8:05 pm

    ok

    Reply
  10. Olagunju Funmilayo Grace

    - Apr 8, 2022 at 9:51 am

    Ok

    Reply
  11. Boluwatifegold

    - Apr 8, 2022 at 9:08 am

    ok

    Reply
  12. Anaebo chinenye vivian

    - Apr 8, 2022 at 7:33 am

    Ok

    Reply
  13. essentials

    - Apr 7, 2022 at 10:32 pm

    Great update

    Reply
  14. Emmyshem

    - Apr 7, 2022 at 7:22 pm

    Correct

    Reply
  15. Frankchima

    - Apr 7, 2022 at 7:01 pm

    Still much

    Reply
  16. Babatunde samson

    - Apr 7, 2022 at 6:35 pm

    Hun

    Reply
  17. Akinbunmi1

    - Apr 7, 2022 at 6:22 pm

    Good

    Reply

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