The Central Bank of Nigeria (CBN) has declared a halt to new loan applications under its development finance intervention funds scheme.
This suspension marks a significant shift in the central bank's approach to development finance intervention funds, which were previously considered a fundamental component of its operations.
In addition to this, the CBN has instructed Deposit Money Banks to recover loans already disbursed under the scheme. This announcement was made in a circular issued to bank CEOs by Sa’ad Hamidu, the Acting Director of the Development Finance Department, on Tuesday.
The circular, titled 'Suspension of Acceptance of New Applications under the Existing Central Bank of Nigeria, CBN Development Finance Intervention Programme', 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.
It further explained, “Accordingly, the CBN would be moving into more limited policy advisory roles that support economic growth.
In light of these developments, the CBN has informed that it has ceased accepting new loan applications for processing under any of its existing intervention programmes and schemes.