CBN Directs Access Bank, Zenith, UBA, Others to Go after Debtors, Suspends Further Loan Applications
- The Central Bank of Nigeria (CBN) has placed the burden of loan recoveries on commercial banks
- The bank said that the banks would now be responsible for the recovery of various loans granted under its various intervention schemes
- It also announced that it is pulling back from various loan schemes after investing over N1 trillion
Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
The Central Bank of Nigeria (CBN) has suspended applications for new loans under its development finance intervention funds.
The apex bank said banks are now responsible for recovering loans granted under various schemes.
Source: Twitter
The bank announced this via a circular to bank Chief executives signed by the Acting Director of the Development Finance Department, Sa’ad Hamidu.
PAY ATTENTION: Share your outstanding story with our editors! Please reach us through info@corp.legit.ng!
The bank stated it had commenced a pullback from direct development financing interventions.
Vanguard reports that CBN said the banks are now responsible for loan recoveries granted under development finance intervention funds.
According to reports by Legit.ng, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, revealed that over N10 trillion has been loaned to customers under various intervention schemes.
CBN data showed that between September and October 2022, the apex bank disbursed about N41.02 billion to several agricultural projects under the Anchor Borrowers’ Programme (ABP).
The total disbursement under the ABP scheme amounts to N1.07 trillion to about 4.6 million smallholder farmers growing 21 commodities nationwide.
CBN also disbursed N300 million to fund large-scale agricultural projects under the Commercial Credit (CACs), amounting to N745.31 billion paid under the scheme.
The bank released N48.30 billion under the N1 trillion Real Sector Facility to seven new real sector initiatives in agriculture, manufacturing, and services, bringing the total disbursement under the facility to N2.15 trillion to 437 projects in Nigeria.
The Nation reports that beneficiaries of the 100 for 1oo on production and productivity scheme received about N20.78 billion under various sectors spanning healthcare, manufacturing, and services, amounting to N114.17 billion disbursed to approximately 71 projects across Nigeria.
The circular said:
“In furtherance of the Central Bank of Nigeria’s (CBN) 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.
“Considering the above, the CBN wishes to inform you that it has stopped accepting new loan applications for processing under any existing intervention programmes and schemes.
“It is essential that you communicate this to your customers. Kindly note that the interest rates and other terms and conditions on all existing facilities remain as contained in their respective approval letters.
“You may also wish to note that your bank shall be responsible for recovering the outstanding balance on all facilities previously accessed through your bank.”
Nigerians react as CBN introduces changes to savings, current accounts
Legit.ng reported that Nigerians on social media have expressed mixed feelings about the directives by the Central Bank of Nigeria (CBN) mandating bank account holders to link their accounts to Bank Verification Numbers (BVNs) and National Identity Numbers (NINs) for all bank transactions beginning March next year.
The apex bank, in a circular signed by its director of the Payment System Management Department, Chibuzo Efomi, and the director of the Financial Policy and Regulation Department, outlined the implementation of the new policy.
The CBN directed banks that, effective immediately, new Tier 1 accounts or wallets can only be opened with BVN or NIN.
PAY ATTENTION: Donate to Legit Charity on Patreon. Your support matters!
Source: Legit.ng
