The Central Bank of Nigeria (CBN) has reduced interest rates on its facilities through participating Other Financial Institutions (OFIs) from 9% to 5% per annum for one year effective March 1, 2020. This is in accordance to government’s continuous effort to alleviate the impact of COVID-19 on households, businesses and regulated institutions.
The Bank, in a circular signed by the Director, Financial Policy and Regulation Department, Kevin Amugo, and issued on Wednesday, May 27, 2020 in Abuja announced that CBN intervention facilities obtained through participating OFIs – Microfinance Banks (MFBs), Primary Mortgage Banks, and Institutions, among others – will be given a further one-year moratorium on all principal repayments, also effective March 1, 2020.
According to the circular, OFIs have equally been granted leave to consider temporary and time limited restructuring of the tenor and loan terms for households and businesses affected by COVID-19, subject to the recently issued guidelines for restructuring affected credit facilities in the OFI sub-sector.