The Central Bank of Nigeria has taken a noteworthy step by announcing the suspension of new loan applications within its development finance intervention funds program.
This move marks a departure from its previous stance, where such intervention funds were considered a cornerstone of the central bank’s operations.
In a circular addressed to bank Chief Executives and signed by Sa’ad Hamidu, the Acting Director of the Development Finance Department, the apex bank outlined the suspension under the title ‘Suspension of Acceptance of New Applications under the Existing Central Bank of Nigeria, CBN Development Finance Intervention Programme.’
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The circular emphasized the central bank’s shift in policy, focusing on its core mandate of ensuring price and monetary stability, leading to a reduced role in direct development financing interventions.
As a result of this policy adjustment, the CBN has ceased the acceptance of new loan applications for processing under its existing intervention programs and schemes.
The circular instructs banks to communicate this change to their customers, underscoring that interest rates and other terms and conditions on existing facilities will remain unchanged as specified in their respective approval letters.
Additionally, Deposit Money Banks are tasked with the responsibility of recovering outstanding balances on previously granted loans under the program.
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