CBN Reduces Interest Rates On COVID-19 Loans and Others

COVID-19 loans Intervention Funds

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.

READ: Nigeria Banks To Restructure 33% Of Loans – CBN

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 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.