The Central Bank of Nigeria (CBN) has slashed interest rates on its intervention programs to 5 percent from 9 percent.
The Central Bank governor, Godwin Emfiele who made this known while addressing journalists asked all commercial banks in the country to restructure the loan terms and tenors to households and businesses affected as a result of the coronavirus outbreak.
He said, “The CBN would work closely with DMBs to ensure that the use of this forbearance is targeted, transparent and temporary, whilst maintaining individual DMB’s financial strength and overall financial stability of the system.”
It will also extend intervention facilities and loans to pharmaceutical companies intending to expand/open their drug manufacturing plants in Nigeria, as well as to hospital and healthcare practitioners who intend to expand/build the health facilities to first-class centres.
The apex bank is to also strengthen and sustain its loan to deposit ratio (LDR) policy in view of the success of the policy in growing credit to the economy and reducing interest rates. The CBN intends to offer more support to industry funding levels in order to maintain DMS’s capacity to give credit to individuals, households and businesses.
The CBN said they will always monitor developments and will issue further updates when required.