Central Bank of Nigeria (CBN), has reduced interest rates on its facilities through participating Other Financial Institutions (OFIs) from 9% to 5% per annum for one year effective March 1, 2020.

The directive was contained in a circular issued on Wednesday and singed by the apex bank’s Director, Financial Policy and Regulation Department, Mr Kevin Amugo.

The circular also announced that CBN intervention facilities obtained through participating OFIs – Microfinance Banks (MFBs), Primary Mortgage Banks, and Institutions, among others – will be given a further one-year moratorium on all principal repayments, also effective March 1, 2020.

According to the apex bank, OFIs have equally been granted leave to consider temporary and time limited restructuring of the tenor and loan terms for households and businesses affected by Covid-19, subject to the recently issued guidelines for restructuring affected credit facilities in the OFI sub-sector.

Commenting on the monetary directive, Director, Corporate Communications Department, Mr Isaac Okorafor, said “the Management approval for the restructuring of credit facilities in the Other Financial Institutions (OFI) sub-sector was in line with the Bank’s desire to alleviate momentary strain on households, businesses and regulated institutions triggered by the lockdown due to Covid-19.

Daily Trust