The Central Bank of Nigeria (CBN) has issued a directive halting the acceptance of new loan applications under its Development Finance Intervention Programme.
This announcement was conveyed through a circular addressed to the Chief Executives of banks and signed by Sa’ad Hamidu, the Acting Director of the Development Finance Department, on Tuesday, December 13.
The circular outlined the key points of the suspension:
“In furtherance of the Central Bank of Nigeria’s 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.
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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 loan 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.
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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.”
This move signifies a shift in the CBN’s approach, aligning with a renewed focus on its primary mandate of ensuring monetary and price stability. The directive emphasizes the cessation of new loan applications, urging banks to inform their customers about this development.
Moreover, it clarifies that the terms and conditions of all existing facilities under the programme remain unchanged, emphasizing that the responsibility for recovering outstanding balances on previously accessed facilities lies with the respective banks.
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This decision reflects the CBN’s pivot towards a more advisory role aimed at supporting economic growth while redirecting its direct involvement in development financing interventions.
The circular’s directives take immediate effect, marking a significant transition in the CBN’s intervention strategies.
