The Central Bank of Nigeria (CBN) has announced the suspension of new loan applications under its development finance intervention funds programme.
This move marks a departure from the previous emphasis on such intervention funds, which were considered a cornerstone of the central bank’s approach.
The apex bank, through a circular addressed to the Chief Executives of banks and signed by Sa’ad Hamidu, the Acting Director of the Development Finance Department, outlined the changes on Tuesday.
The circular, titled ‘Suspension of Acceptance of New Applications under the Existing Central Bank of Nigeria, CBN Development Finance Intervention Programme,’ stated that the CBN is realigning its focus to fulfill its core mandate of ensuring price and monetary stability, moving away from direct development financing interventions.
“In furtherance of the Central Bank of Nigeria’s new policy thrust focusing on its core mandate of ensuring price and monetary stability, the Bank has commenced its pullback from direct development financing interventions.
“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 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 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.”