Nigeria: CBN reduces interest rate on loans amid coronavirus crisis

The Central Bank of Nigeria (CBN) has announced the reduction of interest rate on its intervention loans from 9 percent to 5 percent as well as an extension of the moratorium from one to two years, according to a news report by Vanguard.

The Governor of the bank, Godwin Emefiele said at a press briefing in Abuja that the measures was the bank’s first response to the coronavirus global crisis, which has adversely affected businesses in many sectors across the world.

CBN Gov, #Emefiele announces reduction of interest rates on all applicable CBN intervention facilities from 9% to 5% per annum with effect from March 1, 2020 #CBNResponsetoCOVID19 #COVID19Nigeria

— Central Bank of Nigeria (@cenbank) March 16, 2020

He has also announced an N50 billion additional fund for the NIRSAL Micro Finance Bank for on-lending to Small and Micro and Enterprises.

Emefiele said that CBN has come up with regulatory forbearance to enable Deposit Money Banks to restructure their customers’ loans with a view to reducing the burden on businesses and households.

According to Emefiele, the coronavirus pandemic is affecting both the global and Nigerian economies. It has already led to unprecedented disruptions in global supply chains, a sharp reduction in crude oil prices, turmoil in the global stock and financial markets, widespread cancellations in sporting, entertainment and business events, the lockdown of a large source of the movement of persons, in many countries and intercontinental travel restrictions across critical air routes across the world.