Business Economy Headline News Nigeria

CBN recovers N3.7tn intervention fund

The Central Bank of Nigeria has recovered N3.7 trillion out of the N9.3 trillion it lent to different sectors of the economy.

The Director, Development Finance Department, Dr Yusuf Yila said on Monday that over N5 trillion worth of loans were yet to be due because of subsisting moratorium.

He said the bank would ensure it recovers every outstanding loan and deploy the global standing instruction with the aid of bank verification number (BVN) to recover the loans.

Dr Yila said the apex bank would slow down on further developmental finance interventions as a means of checking excess liquidity in the system.

In his contribution, the CBN Director of Monetary Policy, Dr Hassan Mahmud explained that radical raise in interest rate announced on Tuesday as well as the cash reserve ratio was to check the inflationary which was a source of concern to the bank.

He said although this would increase the cost of funds and hinder growth, it had to prioritise taming inflation which was capable of rendering any growth valueless.

On Tuesday, the Governor of the Bank, Mr Godwin Emefiele raised the monetary policy rate from 14% to 15.5% after the monetary policy committee meeting in Abuja.

The hike is the most aggressive in more than 10 years.

Mr Emefiele said the decision was in tandem with the inflationary pressure which now stands at 20.52%

He hinted that the apex bank might continue to raise rates to minimise the impact of capital flight out of the country.

Customers to now earn 4.65% interest on savings account

Bank customers will now earn more interests following the directive of the Central Bank of Nigeria (CBN) on banks to pay at least a 4.65% interest on savings deposit accounts, from the earlier 4.2%.

This is as a result of the monetary policy rate which rose from 14% to 15.5% by 150 basis points.

The decision by Nigeria’s apex bank results to an increase in the interest rate on savings deposits, which has the potential to positively impact the money in circulation.

Reporting by Biodun Dare, Editing by Muzha Kucha and Annabel Nwachukwu