As part of efforts to mitigate the impact of the coronavirus on households, businesses and regulated institutions, Central Bank of Nigeria (CBN) has reduced interest rates on its facilities, through participating Other Financial Institutions (OFIs), from 9% to 5% per annum for a year, taking effects March 1, 2020.

The bank also announced, in a circular signed by the Director, Financial Policy and Regulation Department, Kevin Amugo, issued on Wednesday, that CBN intervention facilities obtained through participating OFIs – Microfinance Banks (MFBs), Primary Mortgage Banks, and Institutions, among others – will be given a further one-year moratorium on all principal repayments, also effective March 1, 2020.

As contained in the circular, subject to the recent issued guidelines for restructuring affected credit facilities in the OFI sub-sector, OFIs have equally been granted leave to consider temporary and time limited restructuring of the tenor and loan terms for households and businesses affected by COVID-19.

Speaking further on the decision of the bank, the Director, Corporate Communications Department, Isaac Okorafor, said the management approval for the restructuring of credit facilities in the Other Financial Institutions (OFI) sub-sector was in line with the bank’s desire to alleviate momentary strain on households, businesses and regulated institutions initiated by the lockdown due to COVID-19.

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He stated that the CBN would also continue to monitor developments and implement appropriate measures to safeguard financial stability and support stakeholders impacted by the COVID-19 pandemic.

On the other hand, the Monetary Policy Committee (MPC) meeting of the CBN for the month of May holds on Thursday.