Under its initiative to provide development finance intervention funds, the Central Bank of Nigeria has declared that it will no longer be accepting fresh loan applications.
The suspension signifies a substantial change in how the central bank views development finance intervention funds, which were once thought to be a pillar of the institution.
Additionally, Deposit Money Banks were tasked by the apex bank with recovering loans that had previously been approved under the program.
This was announced by the CBN on Tuesday to bank chief executive officers through a circular signed by Sa’ad Hamidu, acting director of the department of development finance.
The circular titled ‘Suspension of Acceptance of New Applications under the Existing Central Bank of Nigeria, CBN Development Finance Intervention Programme’ read,
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“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.
“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.
“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.”
