The Central Bank of Nigeria has announced the suspension of the acceptance of new loan applications under its development finance intervention funds program. The directive was conveyed through a circular addressed to the Chief Executives of banks, signed by the Acting Director of the Development Finance Department, Sa’ad Hamidu, on Tuesday, December 13.
The circular stated:
“Suspension of Acceptance of New Applications under the Existing Central Bank of Nigeria, CBN Development Finance Intervention Programme
In line with the Central Bank of Nigeria’s renewed policy focus on its core mandate of ensuring price and monetary stability, the Bank is withdrawing from direct development financing interventions. Consequently, the CBN wishes to notify you that it has ceased accepting new loan applications for processing under any of its existing intervention programs and schemes.
It is crucial to communicate this information to your customers. Additionally, please be aware that the interest rates and other terms and conditions on all existing facilities remain unchanged as specified in their respective approval letters.
It is also pertinent to note that your bank is responsible for the recovery of the outstanding balance on all facilities previously accessed through your bank.”
