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As part of effort to mitigate the impact of the coronavirus (COVID-19) pandemic on households, businesses and regulated institutions, the Central Bank of Nigeria (CBN), has reduced interest rates on its facilities through participating Other Financial Institutions (OFIs) from 9 per cent to 5 per cent per annum for one year effective March 1, 2020. 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, also announced that its 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, 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.
CBN’S Director, Corporate Communications Department, Isaac Okorafor, said the management’s approval for the restructuring of credit facilities in the Other Financial Institutions (OFI) sub-sector was in line with the bank’s desire to alleviate momentary strain on households, businesses and regulated institutions triggered by the lockdown due to COVID-19.
