The Central Bank of Nigeria (CBN) has directed commercial banks to formally extend repayment of credit facilities given to cushion the COVID-19 pandemic.

According to a circular tagged FPR/DIR/PUB/01/001 issued on March 3, 2021, the apex bank said it reduced interest rates on CBN intervention facilities from nine per cent to five per cent per annum for one year beginning from March 1, 2020.

It said the decision was part of the measures to mitigate the negative impact of the COVID-19 pandemic on the Nigerian economy.

Credit facilities availed through the participating banks and other financial institutions (OFIs) were also granted a one-year moratorium on all principal payments since March 1, 2020, it noted.

The CBN, therefore, said following the expiration of these timelines, it has approved another timeline.

“The extension by another 12 months to February 28, 2022, of the discounted interest rate for the CBN intervention facilities.

“The roll-over of the moratorium on the above facilities shall be considered on a case by case basis.”

The bank said further enquiries on the provisions of the circular may be addressed to the Director, Development Finance Department, according to the circular from the Director, Financial Policy and Regulation Department of CBN, Dr Kevin Amugo.