The Central Bank of Nigeria (CBN) has returned the interest rate on all its intervention facilities to 9 percent per annum.
This is according to a circular to all banks and other financial institutions titled, “Adjustment of Interest Rate on All Central Bank of Nigeria Interventions,” signed by Chibuzo A. Efobi, Director, Financial Policy and Regulation Department.
According to the CBN, the interest rate reduction to 5 percent per annum is part of its mitigation response to the negative impact of the COVID-19 pandemic on Nigeria’s economy.
What the CBN is Saying
The apex bank disclosed that this circular is further to the previous one dated March 15, 2022 (Ref: FPR/DIR/PUB/CIR/001/040), which extended the period of the interest rate reduction on its intervention facilities from 9 percent to 5 percent per annum. The apex bank also noted:
“All intervention facilities granted effective July 20, 2022, shall be at 9 percent per annum;”
“All existing intervention facilities granted before July 20, 2022, shall be at 9 percent per annum effective September 1, 2022.”
What you should know
On March 1, 2020, the CBN reduced the interest rates on its intervention funds from 9 percent to 5 percent per annum for one year.
It extended the discounted interest rate period in March 2022 by an additional 12 months to February 28, 2022. Also, on March 5, 2022, the apex bank continued with the interest rate reduction.