Interest rates

CBN pushes single-digit interest rates on intervention facilities through 2023

The Central Bank of Nigeria (CBN) has announced that interest rates on its various intervention facilities have been extended until March 1, 2023.

This was revealed by the Governor of the Central Bank of Nigeria, Godwin Emefiele, during the Bankers Committee press conference on Thursday, February 10, 2021.

According to Emefiele, the first bank would evaluate these intervention programs in the future to ensure that they continue to produce the desired results.

What the CBN says

He said the promising trajectory the CBN has set for economic growth and job creation would be helped by the extension of the interest rate for the intervention program.

“Although interest rates on our various intervention facilities are expected to return to 9% effective March 1, 2022, we are announcing that rates will remain at 5% for another year. This is given the promising trajectory we have established for economic growth and job creation. Indeed, the preferential interest rate of 5% on our intervention facilities will now be extended until March 1, 2023,” said Emefiele.

He also said that the CBN had so far provided more than three trillion naira in intervention loans, working with database management systems and participating financial institutions, one of the important elements for the recovery. economy and job creation.

According to him, the bank disbursed N948 billion to 4,478,381 smallholder farmers who farmed 5.2 million hectares of farmland across the country through the Anchor Borrowers scheme, creating 12.5 million jobs. direct and indirect.

“Furthermore, under its Targeted Credit Facility, intended to assist households and businesses that have suffered significant losses during the COVID-19 pandemic, the Bank has disbursed N368.79 billion to 778,000 beneficiaries. comprising 648,052 households and around 130,000 SMEs”, he said.

The CBN has also disbursed N1.452 billion for 337 major projects in agriculture, industry, services and mining through the Real Sector Support Facility, according to the governor.

In the health sector, Emefiele said 122 key projects totaling N115.36 billion have been funded, including 31 pharmaceutical projects and 91 hospital projects receiving funding.

According to him, the intervention resulted in the purchase of 59 magnetic resonance imaging scanners, 42 computed tomography scanners and four oncology screening devices.

“For the AGSMEIS programme, which targets agribusiness SMEs, a total of N134.63 billion was released for 37,571 SME projects, of which 67% were projects directly related to agriculture , 22.5% in services, while the balance was in fashion, information technology and related subsectors. Under the Nigeria Power Stabilization Facility, a total of N229 billion has been disbursed to nine DisCos, to help them cover their financial obligations to upstream market players,” he said.