CBN reverts to 9 percent interest rate on all its facilities

The Central Bank of Nigeria (CBN) has reverted to 9 percent interest rate on its facilities, ending its Covid-19 period reduction to 5 percent.

The apex bank disclosed this in a circular to banks dated August 17, and signed by Chibuzo Efobi, director, financial policy and regulation department.

The circular reads, “Further to our Circular dated March 15, 2022 (Ref: FPR/DIR/PUB/CIR/001/040) extending the period of interest rate reduction on all intervention facilities from 9 per cent to 5 per cent per annum (as part of measures to mitigate the negative impact of COVID-19 pandemic on the Nigerian economy) the Central Bank of Nigeria hereby reverts the interest rate on all its intervention facilities to 9 per cent per annum.

“The revised rate shall be implemented as follows:

1. All intervention facilities granted effective July 20, 2022 shall be at 9 per cent per annum;

2. All existing intervention facilities granted prior to July 20, 2022 shall be at 9 per cent per annum effective September 1, 2022.

“Further enquiries on the provisions of this Circular may be referred to the Director, Development Finance Department.”