CBN Extends Single-Digit Interest Rates on Intervention Facilities
The Central Bank of Nigeria (CBN) has announced the extension of its single-digit interest rate on various intervention facilities until March 1, 2022. This statement was made by Mr. Godwin Emefiele, the governor of the apex bank, during a Bankers’ Committee event in Abuja on Thursday.
The CBN’s extension refers to maintaining a 5% interest rate on several loan programs until March 2022. This move aims to provide financial relief and support to sectors impacted by economic challenges.
Mr. Emefiele further disclosed that the CBN has disbursed approximately N948 billion to 4,478,381 smallholder farmers cultivating 5.2 million hectares of farmland across the country. This initiative has generated about 12.5 million jobs nationwide.
Additionally, under its Targeted Credit Facility (TCF), designed to assist households and businesses that experienced significant losses during the COVID-19 pandemic, the bank disbursed N368.78 billion to 778,000 beneficiaries, which includes 648,056 households and approximately 130,000 small and medium-sized enterprises (SMEs).
The governor also highlighted that through the Agri-Business Small and Medium Enterprise Investment Scheme (AGSMEIS), which focuses on SMEs in the agribusiness sector, the CBN released a total of N134.68 billion to 37,571 micro, small, and medium enterprises (MSMEs). Out of this, 67% went to agricultural-related businesses, 22.5% to services, while the remaining funds were directed towards fashion, information technology, and related sub-sectors.
FAQs
What is the purpose of the CBN’s extension of the 5% interest rate on loan programs?
The extension aims to provide continued financial support to sectors impacted by economic challenges, particularly during the COVID-19 pandemic, by maintaining a single-digit interest rate until March 2022.
How many jobs have been created through the CBN’s agricultural loan initiatives?
The CBN’s intervention in agriculture has resulted in the creation of about 12.5 million jobs nationwide.
How much has the CBN disbursed under its Targeted Credit Facility (TCF)?
The CBN has disbursed N368.78 billion to 778,000 beneficiaries, which includes households and SMEs, under the TCF.
What percentage of AGSMEIS funds was allocated to agribusinesses?
Under the AGSMEIS program, 67% of the funds were allocated to agricultural-related businesses.
