Nigerian deposit money banks have halted accepting new loan applications under the Central Bank of Nigeria’s (CBN) development finance intervention funds. This development was disclosed through a notification sent to customers by Access Bank on Monday.
This followed an earlier announcement in December 2023 by the CBN officially discontinuing the processing of new loan applications under its existing development finance intervention funds.
These programs include the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), Accelerated Agricultural Development Scheme (AADS), Anchor Borrowers Program (ABP), Agri-Business/Small and Medium Enterprises Investment Scheme (AGSMEIS), and the Real Sector Support Fund (RSSF).
The communication from Access Bank also emphasized that all existing CBN development finance intervention funds with approved interest rates will remain unchanged. Customers are expected to fully repay these existing loans in accordance with agreed terms and conditions.
This unexpected decision to suspend new applications for CBN funds raises questions about the potential implications for businesses and individuals seeking financial support amid economic challenges.
Stakeholders are closely monitoring the situation for further developments.
