COVID-19 Loans: CBN Extends Forbearance By 12 Months

The Central Bank of Nigeria (CBN) has again extended, by another year, the regulatory forbearance on its intervention facilities that it instituted to cushion the impact of COVID-19 on companies and businesses.

The apex bank, which stated this in a circular posted on its website yesterday, said that the fresh extension of the five per cent interest rate on all its intervention fa-cilities for one year “takes effect retrospectively from February 28, 2022.

CBN reduced the interest rates on the CBN intervention facilities from nine per cent to five per cent per annum for one-year effective, March 1, 2020, as part of measures to mitigate the negative impact of COVID-19 on the country’s economy. CBN also offered to rollover moratorium granted on all principal payments on a case by case basis.

All credit facilities had been granted a one-year moratorium starting from March 1, 2020 when the pandemic first gripped Nigeria. Following the expiration of the March timeline last year, the apex bank announced in a circular dated March 3, 2021, that it had extended the regulatory forbearance for the restructuring of its intervention facilities by another 12 months.

It also announced that the roll-over of the moratorium on the facilities will be considered on a case by case basis. On February 10, CBN Governor, Mr. Godwin Emefiele, disclosed that the apex bank had approved the extension, by another year, of the five per cent concessionary interest rate on all intervention facilities granted in the wake of COVID- 19.

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