The Central Bank of Nigeria (CBN) has reduced interest rates on its facilities through participating Other Financial Institutions (OFIs) from nine to five per cent per annum for one year, effective from March 1, 2020.
The reduction according to the apex bank is part of its continued efforts to soften the impact of the coronavirus on households, businesses and regulated institutions.
The CBN made this known on Wednesday in a circular signed by the Director, Financial Policy and Regulation Department, Kevin Amugo.
It noted that intervention facilities obtained through participating OFIs Microfinance Banks (MFBs), Primary Mortgage Banks and Institutions, among others, would further receive a one-year moratorium on all principal repayments, also effective from March 1, 2020.
The circular further disclosed that OFIs have 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.