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COVID-19: Nigeria’s Apex Bank Drops Interest Rate to 5% to Support Fight Against Virus

Creates N50bn credit facilities for affected families and households

COVID-19: Nigeria’s Apex Bank Drops Interest Rate to 5% to Support Fight Against Virus

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COVID-19: Nigeria’s Apex Bank Drops Interest Rate to 5% to Support Fight Against Virus

The Central Bank of Nigeria, CBN, has reduced interest rate for loans from nine percent to five percent as part of efforts to support the fight against Coronavirus in the country.

Governor of the CBN, Mr Godwin Emefiele announced this in Abuja, the country’s capital, during a briefing with journalists on the effect of COVID-19 on the country’s economy.

He said the new interest rate took effect from 1st march, 2020, and would last for only one year.

Mr Eemefiele also announced plans by the apex bank to support affected families and households to cushion the effect of COVID-19.

He explained that a targeted credit facility of 50 billion naira would be disbursed to households and owners of businesses affected by the virus.

Also, credit support from the bank would be extended to the healthcare industry, while loans would be disbursed to pharmaceutical companies for production of requisite medications.

Other interventions by the CBN are extension of moratorium on loans, regulatory forbearance and strengthening of Loan to Deposit Rate policy.

The World Health Organisation had earlier raised alarm over possible transmission of COVID-19 through contact with cash, advising people to reduce contact with cash.

Following the warning by the WHO, many banks in Nigeria have adopted strict preventive measures, including providing sanitizers for customers to disinfect their hands before going into the banking hall.

Use of facemask has also been made compulsory for workers in most banks.

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