The Central Bank of Nigeria has approved moratoriums on CBN facilities managed by Other Financial Institutions (OFIs). It reduced the interest rates on these facilities from 9% to 5% for a year, effective from March 1, 2020.
The CBN also allowed OFIs to restructure payment plans and grant moratoriums on principal payments from the same date. The Bank of Industry, which is an OFI, had already reduced interest rates and granted moratoriums on some of its credit facilities in April.
”CBN intervention facilities obtained through participating OFIs – Microfinance Banks (MFBs), Primary Mortgage Banks, and Institutions, among others – will be given a further one-year moratorium on all principal repayments, also effective March 1, 2020.”
CBN said the move was aimed at reducing the impact of coronavirus on household businesses and regulated institutions in the country.