ENUGU, Nigeria (VOICE OF NAIJA)- The Central Bank of Nigeria (CBN) has taken a significant step by suspending the acceptance of new loan applications under its development finance intervention funds scheme.
This decision marks a notable departure from the central bank’s previous emphasis on these intervention funds, which were once considered a foundational aspect of its initiatives.
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In a circular addressed to bank CEOs and issued by the Acting Director of the Development Finance Department, Sa’ad Hamidu, on Tuesday, the CBN directed Deposit Money Banks to focus on the recovery of loans already granted through the program.
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 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 commenced its pullback from direct development financing interventions.
“Accordingly, the CBN would be moving into more limited policy advisory roles that support economic growth.
“In consideration of the above, the CBN wishes to inform you that it has stopped accepting new loan applications for processing under any of its existing intervention programmes and schemes.”