Under its development finance intervention funds plan, the Central Bank of Nigeria, or CBN, has declared that it would no longer be accepting new loan applications.
The suspension marks a significant change in the central bank’s position towards development finance intervention funds, which were once thought to be essential.
Additionally, the recovery of already granted loans under the scheme was handed to Deposit Money Banks by the central bank.
This was disclosed by the CBN in a memo sent to bank CEOs on Tuesday by Sa’ad Hamidu, the acting director of the department of development finance.”In furtherance of the Central Bank of Nigeria’s new policy thrust focusing on its core mandate of ensuring price and monetary stability, the Bank has begun its pullback from direct development financing interventions,” stated the circular titled “Suspension of Acceptance of New Applications under the Existing Central Bank of Nigeria, CBN Development Finance Intervention Programme.”As a result, the CBN would be assuming smaller, more consultative responsibilities in policy matters that promote economic expansion.”The CBN wishes to notify you that it has stopped accepting new loan applications for processing under any of its existing intervention programmes and schemes in consideration of the above.”
