The Central Bank of Nigeria (CBN) has taken a fresh move and increased the interest rate on its intervention loans to nine per cent per annum.
Before the new development, the interest rate on all its intervention loans was placed at 5% per annum.
The apex bank in a circular to all banks signed by Chibuzo Efobi, director of financial policy and regulation department on Wednesday.
“Further to our circular dated March 15, 2022 (Ref: FPR/DIR/PUB/CIR/001/040) extending the period of interest reduction to all intervention facilities from nine per cent to five 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 reversed rates shall be implemented as follows: All intervention facilities granted effective July 20, 2022, shall be at a nine per cent per annum; all existing intervention facilities granted prior to July 2022 shall be at 9 per cent per annum effective from September 1, 2022.
“Further enquiries on the provisions of this Circular may be referred to the Director, Development Finance Department,” the CBN said.
Two days ago, the CBN directed banks to increase the minimum interest rate payable on savings deposits to 4.2 per cent—30 per cent of the current 14 per cent monetary policy rate (MPR).
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