The Central Bank of Nigeria (CBN) has suspended applications for new loans under its development finance intervention funds....CONTINUE READING
The apex bank said banks are now responsible for recovering loans granted under various schemes. The bank announced this via a circular to bank Chief executives signed by the Acting Director of the Development Finance Department, Sa’ad Hamidu.
The bank stated it had commenced a pullback from direct development financing interventions. Vanguard reports that CBN said the banks are now responsible for loan recoveries granted under development finance intervention funds.
According to reports by Legit.ng, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, revealed that over N10 trillion has been loaned to customers under various intervention schemes.
CBN data showed that between September and October 2022, the apex bank disbursed about N41.02 billion to several agricultural projects under the Anchor Borrowers’ Programme (ABP).
The total disbursement under the ABP scheme amounts to N1.07 trillion to about 4.6 million smallholder farmers growing 21 commodities nationwide.
CBN also disbursed N300 million to fund large-scale agricultural projects under the Commercial Credit (CACs), amounting to N745.31 billion paid under the scheme.
The bank released N48.30 billion under the N1 trillion Real Sector Facility to seven new real sector initiatives in agriculture, manufacturing, and services, bringing the total disbursement under the facility to N2.15 trillion to 437 projects in Nigeria.
The Nation reports that beneficiaries of the 100 for 1oo on production and productivity scheme received about N20.78 billion under various sectors spanning healthcare, manufacturing, and services, amounting to N114.17 billion disbursed to approximately 71 projects across Nigeria.
The circular said: “In furtherance of the Central Bank of Nigeria’s (CBN) 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.
“Considering the above, the CBN wishes to inform you that it has stopped accepting new loan applications for processing under any existing intervention programmes and schemes.
“It is essential that you communicate this to your customers. Kindly note that the interest rates and other terms and conditions on all existing facilities remain as contained in their respective approval letters.
“You may also wish to note that your bank shall be responsible for recovering the outstanding balance on all facilities previously accessed through your bank.”
