The Central Bank of Nigeria (CBN) has announced that it is suspending new loan applications for its Intervention Program.
This decision was outlined in a circular titled “Suspension of Acceptance of New Applications under the Existing Central Bank of Nigeria, CBN Development Finance Intervention Programme,” which was sent to the Chief Executives of banks.
The circular, signed by Sa’ad Hamidu, the Acting Director of the Development Finance Department, signifies a change in the bank’s operational focus.
This suspension marks a significant departure from the previous central bank’s emphasis on development finance intervention funds.
The CBN has given commercial banks the task of recovering outstanding loans that were issued under intervention programs.
With this development, the CBN is making a stronger effort to simplify its financial commitments and focus more on traditional central banking roles.
As part of this strategy, the apex bank plans to step back from directly participating in development finance interventions and instead focus on its main responsibilities related to monetary policy.
This shift will involve taking on more of an advisory role, where the CBN can provide guidance on policies that promote overall economic growth.
The statement
“Accordingly, the CBN would be moving into more limited policy advisory roles that support economic growth.
“In consideration of the above, the CBN wishes to inform you that it has stopped accepting new loans 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 in their respective approval letters.
“You may also wish to note that your bank shall be responsible for the recovery of the outstanding balance on all facilities previously accessed through your bank.”
