The Central Bank of Nigeria (CBN) has effective from March 1 2020 approved the reduction of interest rates on COVID-19 loans and other CBN fund interventions from 9% to 5%.
In a circular issued by the apex bank and dated March 3, 2021, the CBN said the decision is part of measures taken to mitigate the negative impact of the COVID-19 Pandemic on the Nigerian economy.
All other credit facilities, availed through participating banks and OFls, were also granted a one-year moratorium on all principal payments, effective from March 1 , 2020.
CBN Fund intervention to be affected include;
• CBN AGSMEIS Loan
• CBN MSMEDF Loan
• CBN Creative Industry Financing Initiative
• Healthcare RnD Intervention Full Guidelines
• CBN Fund for Non-Oil Export Sector (NESF)
• CBN N50bn COVID-19 Support Loan for Households and Businesses
Accordingly, the CBN approves the following:
1) The extension by another twelve (12) months to February 28, 2022, of the discounted interest rate for the CBN intervention facilities;
2) The roll-over of the moratorium on the above facilities shall be considered on a case by case basis.