The Central Bank of Nigeria has announced a one-year moratorium on all principal repayments for COVID-19 intervention loans through its participating Other Financial Institutions.
The new moratorium, which was disclosed in a circular, on Wednesday, signed by the apex bank’s Director, Financial Policy and Regulation, Kevin Amugo, will take effect from March 1, 2020.
“The CBN intervention facilities obtained through participating OFIs will be given a further one-year moratorium on all principal repayments, also effective March 1, 2020,” it said.
The CBN, however, added that it would continue to monitor developments and implement appropriate measures to ensure financial stability and support stakeholders impacted by the COVID-19 pandemic.
As part of efforts to mitigate the impact of COVID-19 on households, businesses and regulated institutions, the CBN said it had also reduced interest rates on its facilities through participating OFIs, from nine per cent to five per cent per annum, for one year, effective March 1, 2020.
OFIs may also consider temporary and time-limited restructuring of the tenor and loan terms for households and businesses affected by COVID-19, subject to the recently issued guidelines for restructuring affected credit facilities in the OFI subsector, according to the apex bank.
The Director, Corporate Communications, CBN, Isaac Okorafor, said the management’s approval of the restructuring of credit facilities was to ease the COVID-19 induced stress on households, businesses and regulated institutions.
