In a significant policy shift, the Central Bank of Nigeria (CBN) has officially suspended the acceptance of new loan applications within its development finance intervention funds program.
This move marks a notable departure from the central bank’s previous stance, where such intervention funds were considered pivotal to its initiatives.
The CBN has also directed Deposit Money Banks to take on the responsibility of recovering loans already disbursed under the existing plan. The announcement came through a circular issued to bank CEOs by Sa’ad Hamidu, the Acting Director of the Development Finance Department, on Tuesday.
Titled ‘Suspension of Acceptance of New Applications under the Existing Central Bank of Nigeria (CBN) Development Finance Intervention Programme,’ the circular outlined the rationale behind the decision. It stated, “In line with the Central Bank of Nigeria’s revised policy focus, emphasizing its core mandate of ensuring price and monetary stability, the Bank is strategically withdrawing from direct involvement in development financing interventions.”
“As a result, the CBN is transitioning into a more focused role of policy advisory to support economic growth. Considering these changes, the CBN hereby announces the discontinuation of the acceptance of new loan applications for processing under any of its existing intervention programs and schemes.”
