Inflation Forces CBN To Move Interest On FG Intervention From 5% To 9%

The rising inflation in the country has forced the Central Bank to revert all interest rates on its intervention to nine per cent.

The CBN had extended the interest rate forbearance it granted to borrowers of some of its intervention funds by one year.

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The CBN charged nine per cent for loans and interventions granted by it through different programmes, but reduced it to five per cent to mitigate the impact of the Covid-19 pandemic in 2020.

When the date of the forbearance elapsed in March, the lender extended it by one year.

But as Nigeria’s inflation worsened, the CBN said in a circular with reference number FPR/DIR/PUB/CIR/001/058 seen by THE WHISTLER that “it hereby reverts the rate on all its intervention facilities to nine per cent per annum.

The National Bureau of Statistics had on Monday released the country’s inflation report which showed that prices are seventeen- year high at 19.64 per cent in July.

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The bank had increased the country’s benchmark lending rate, the Monetary Policy Rate to 14 per cent, a move believed to curb the growth of inflation.

The CBN said, “All intervention facilities granted effective July 20, 2022 shall be at nine per cent per annum.

“All existing intervention facilities granted prior to July 20, 2022 shall be at nine per cent per annum effective September 1, 2022.”

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