By Sabiu Abdullahi
The Central Bank of Nigeria (CBN) has announced the suspension of new loan applications under its Intervention Program.
The decision, conveyed through a circular titled “Suspension of Acceptance of New Applications under the Existing Central Bank of Nigeria, CBN Development Finance Intervention Programme,” was addressed to the Chief Executives of banks.
Sa’ad Hamidu, the Acting Director of the Development Finance Department, signed the circular, signalling a strategic shift in the bank’s operational focus.
This suspension marks a departure from the previous central bank’s emphasis on development finance intervention funds.
Simultaneously, the CBN has assigned commercial banks the task of recovering outstanding loans issued under these now-suspended programs.
This move raises questions about the central bank’s future approach to economic development and the role of commercial banks in facilitating financial interventions.
The financial community awaits further details and clarification from the CBN regarding the rationale behind this decision and the anticipated impacts on economic development initiatives.