Coronavirus:  CBN cuts interest rate to 5%, asks banks to restructure loan terms

The Central Bank of Nigeria (CBN) said it has cut the interest rate of its intervention programmes from 9 per cent to 5 per cent  even as it has directed all deposit money banks (DMBs) in the country to restructure loan terms and tenors to households and businesses affected by the coronavirus outbreak.

The Governor of the CBN, Mr. Godwin Emefiele broke the news on Monday while addressing journalists  in Abuja on Monday.

Emefiele says: “The CBN hereby grants all deposit money banks leave to consider temporary and time-limited restructuring of the tenor and loan terms for businesses and households most affected by the outbreak of Covid-19 particularly oil & gas, agriculture, and manufacturing” .

“The CBN would work closely with DMBs to ensure that the use of this forbearance is targeted, transparent and temporary, whilst maintaining individual DMB’s financial strength and overall financial stability of the system.”