CBN has suspended new loan applications and mandated banks to recover existing loans.
NewsOnline Nigeria reports that the Central Bank of Nigeria (CBN) has announced a suspension of new loan applications under its Intervention Program.
This Nigeria news platform understands that in a circular entitled “Suspension of Acceptance of New Applications under the Existing Central Bank of Nigeria, CBN Development Finance Intervention Programme,” addressed to the Chief Executives of banks, the CBN outlined this new directive.
The circular, signed by Sa’ad Hamidu, the Acting Director of the Development Finance Department, marks a strategic pivot in the bank’s operational focus.
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The suspension represents a significant shift in its approach to development finance intervention funds, which was the cornerstone of the previous central bank.
Concurrently, the CBN has tasked commercial banks, which previously facilitated the distribution of these intervention loans, with the responsibility of recovering outstanding loans issued under these programs.
This move signals an intensified effort by the CBN to streamline its financial commitments and refocus on more traditional central banking roles.
In a further elaboration of its evolving strategy, the CBN emphasized its intention to step back from direct involvement in development finance interventions. Instead, the apex bank plans to concentrate on its primary responsibilities surrounding monetary policy.
This realignment towards its core mandate will involve transitioning into a more advisory capacity, where it can provide policy guidance that supports broader economic growth objectives.
What CBN Said;
“Accordingly, the CBN would be moving into more limited policy advisory roles that support economic growth.
“In consideration of the above, the CBN wishes to inform you that it has stopped accepting new loans applications for processing under any of its existing intervention programmes and schemes.
“It is important that you communicate this to your customers. And kindly note that the interest rates, as well as other terms and conditions on all existing facilities, remain as contained therein in their respective approval letters.
“You may also wish to note that your bank shall be responsible for the recovery of the outstanding balance on all facilities previously accessed through your bank.”
