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Banks must not charge double digit interest rates on intervention funds – CBN

 CBN Governor, Mr. Godwin Emefiele.

CBN Governor, Mr. Godwin Emefiele.

Deposit money banks in Nigeria have been reminded once again that intervention funds of the Federal Government should not be lent to institutions on exploitative interest rates.
Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, warned Participating Financial Institutions (PFIs) in the country against charging double-digit interest rates on intervention funds guaranteed by the CBN.

According to a statement by the CBN acting Director, Corporate Communications, Isaac Okorafor on Wednesday, Emefiele gave the warning in Abeokuta, Ogun State, South West Nigeria.

He did so during an interaction between the Presidential Task Force on Agricultural Commodities and Production and young farmers at the Owowo Model Farm Estate.

The Governor assured the young farmers of the CBN funding support through their respective PFIs. Emefiele asked them to report any bank that charged above 9 per cent interest on loans guaranteed by the CBN.

He assured them that development finance officers of CBN were available to assist them on how to access credit from its various intervention funds to create wealth and meet the country’s food needs.

The governor advised the young farmers to take advantage of the Bank’s Youth Entrepreneurship Development Programme (YEDP) and the Micro, Small and Medium Enterprises Development Fund (MSMEDF) to create wealth.

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