CBN Directs Access Bank, Zenith, UBA, Others to Go after Debtors, suspends further loan applications

Date:

December 13, 2023.

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Azonuchechi Chukwu.

The Central Bank of Nigeria (CBN) has mandated commercial banks, including Access Bank, Zenith, UBA, and others, to take charge of loan recoveries for funds granted under its various intervention schemes. The apex bank also disclosed a suspension of new loan applications under its development finance intervention funds.

The directive was conveyed through a circular addressed to bank Chief Executives and signed by Sa’ad Hamidu, the Acting Director of the Development Finance Department at CBN. The circular underscores the CBN’s decision to withdraw from direct development financing interventions after investing over N1 trillion in various schemes.

Governor Olayemi Cardoso revealed that the CBN had disbursed over N10 trillion under its intervention schemes. Notably, the Anchor Borrowers’ Programme (ABP) witnessed a disbursement of N41.02 billion between September and October 2022, benefiting agricultural projects. The ABP scheme, supporting 4.6 million smallholder farmers growing 21 commodities nationwide, received a total disbursement of N1.07 trillion.

Under the Commercial Credit (CACs), N300 million was disbursed to fund large-scale agricultural projects, with a total payment of N745.31 billion under the scheme. Additionally, the Real Sector Facility saw a disbursement of N48.30 billion to new initiatives in agriculture, manufacturing, and services, totaling N2.15 trillion to 437 projects.

The circular from CBN emphasized a shift in policy focus, aligning with its core mandate of ensuring price and monetary stability. The central bank is transitioning to limited policy advisory roles supporting economic growth. Consequently, new loan applications under existing intervention programs are no longer being accepted.

Banks have been instructed to communicate this change to their customers, emphasizing that interest rates and terms on existing facilities remain unchanged. Banks are now tasked with the responsibility of recovering outstanding balances on previously accessed facilities.

As the CBN recalibrates its approach, the Nigerian financial landscape is likely to witness changes in the dynamics of loan disbursement and recovery, with banks playing a more pivotal role in the process.(www.naija247news.com).

Azonuchechi Chukwu
Azonuchechi Chukwuhttps://gravatar.com/azonuchechivchukwu
Azonuchechi Chukwu - Business Journalist at Naija247news.com Azonuchechi Chukwu is a seasoned business journalist contributing to the insightful coverage of economic and financial news at Naija247news.com. With a passion for unraveling the complexities of the business world, Azonuchechi brings a wealth of expertise and dedication to his role. As a Business Journalist, Azonuchechi specializes in providing comprehensive analyses of market trends, corporate developments, and economic indicators. His in-depth reports offer Naija247news.com readers a nuanced understanding of the forces shaping the Nigerian and global business landscapes. Azonuchechi Chukwu's commitment to journalistic excellence is evident in his ability to translate complex financial information into accessible and engaging narratives. Whether exploring stock market fluctuations, corporate strategies, or economic policies, he strives to deliver content that empowers readers with valuable insights. With an educational background in business and a keen interest in the intersection of finance and technology, Azonuchechi stays at the forefront of industry dynamics. His coverage extends beyond traditional financial reporting, encompassing the dynamic realms of fintech, entrepreneurship, and sustainable business practices. Azonuchechi Chukwu's work goes beyond the surface, aiming to foster financial literacy and awareness among Naija247news.com's audience. By demystifying economic complexities and shedding light on emerging opportunities, he plays a pivotal role in keeping readers well-informed in the fast-paced world of business. As Naija247news.com's Business Journalist, Azonuchechi Chukwu continues to make meaningful contributions to the platform's mission of delivering timely, accurate, and relevant business news to its diverse audience. His dedication to journalistic integrity and his ability to navigate the intricacies of the business realm make him an invaluable asset to the Naija247news.com team.

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