CBN Orders Banks To Ensure Recovery of Intervention Loans … Suspends New Applications

The Central Bank of Nigeria (CBN) has stopped accepting new loan applications for processing under any of its existing intervention programmes and schemes.

The central bank disclosed this in a circular dated December 8, 2023, and signed by its acting Director, Development Finance Department, Sa’ad Hamidu, which was addressed to chief executives of Nigerian banks.

The central bank also said banks shall be responsible for the recovery of the outstanding balance on all facilities previously accessed through their banks.

The apex bank explained that the move was in furtherance of its new policy thrust focusing on its core mandate of ensuring price and monetary stability. Hamidu said the CBN has therefore, commenced its pull back from direct development financing interventions.

Accordingly, he stressed that the bank would be moving into more limited policy advisory roles that support economic growth.

The statement said: “In consideration of the above, the CBN wishes to inform you that it has stopped accepting new loan applications for processing under any of its existing intervention programmes and schemes.

“It is important that you communicate this to your customers and kindly note that the interest rates, as well as other terms and conditions on all existing facilities remain as contained therein their respective approval letters.”