CBN extends 5% interest rate on intervention loan repayment
*Opposes likely economic lockdown by FG
The Central Bank of Nigeria (CBN) has announced that it would extend the five per cent interest rate on loan repayment by one year to March 31 2021.
This is even as the CBN Governor, Mr Godwin Emefiele has disclosed that the apex bank will oppose fresh lockdown moves by the federal government.
Speaking at the end of the two-day Monetary Policy Committee meeting held at the CBN’s headquarters in Abuja, Emefiele says that the apex bank had in March February last year agreed to reduce the interest rate on all of its intervention funds from nine per cent to five per cent for one year effective March 1, 2020.
But when asked whether there will be another extension given the coronavirus pandemic, the CBN Governor said there was a need for such extension because of the second wave of the pandemic.
Emefiele said the five per cent interest rate would be applicable for the entire apex bank’s intervention fund.
The CBN through Deposit Money Banks had provided over N3trillion to Small and Medium Enterprises in the economy.
The loans were given through the Commercial Credit Guarantee Scheme and the Anchor Borrowers Programme, among others.
“On interest rate of 5 per cent concession in march, we would extend by 12 months again the interest rate of five per cent on the CBN intervention, this is the CBN contribution to the Economy and any action that would support the growth of the economy is what we will do”, he said.
On likely economic lockdown, he said, “The central bank would continue to advise the Federal Government against embarking on another lockdown of the economy as such moves would hurt Nigerians.”
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