The Central bank of Nigeria, CBN, has readjusted the interest rate reduction on all interventions from 5 per cent to 9 per cent.
The apex bank announced the adjustment in a circular to all banks and other financial institutions, OFIS, in the country, on Wednesday, by its Director, Financial Policy and Regulation Department, Chibuzo A. Efobi.
According to the circular, the adjusted rate reverses an earlier circular dated March 15, 2022, extending the period of interest rate reduction on all intervention facilities from 9 per cent to 5 per cent per annum, as part of measures to mitigate the negative impact of COVID-19 pandemic on the Nigerian economy.
It noted that effective from July 20, 2022, all intervention facilities granted shall be at 9 per cent per annum and all existing intervention facilities granted prior to July 20, 2022 shall be at 9 per cent per annum effective September 1, 2022.
“Further to our Circular dated March 15, 2022 (Ref: FPR/DIR/PUB/CIR/001/040) extending the period of interest rate reduction on all intervention facilities from 9 per cent to 5 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 9 per cent per annum.
“The revised rate shall be implemented as follows: All intervention facilities granted effective July 20, 2022 shall be at 9 per cent per annum; All existing intervention facilities granted prior to July 20, 2022 shall be at 9 per cent per annum effective September 1, 2022,” the circular read.
