Last Wednesday, the Central Bank of Nigeria announced that, compared with 5% previously, the interest rate on intervention funds provided to certain sectors has risen to 9%. This increase allows the Bank to reduce its preferential financing arrangements.

In a press release issued on August 17, 2022, the Central Bank referred to an announcement it made on March 15 of the same year, concerning the extension of the period of reduction of interest rates on all intervention facilities from 9% to 5% per year. This decision was taken as part of measures to soften the negative impact of the COVID-19 pandemic on the Nigerian economy. To this end, the Central Bank of Nigeria has announced the reversal of the interest rate on all its intervention facilities to 9% every year.

Thus, it indicates that all existing intervention facilities granted before July 20, 2020 would be 9% as of September 1, 2020, while the intervention facilities granted as of July 20, 2020 would be 9% per year. It should be noted that with the CBN's share of private sector credit increasing from approximately 6.5% in 2019 to 10% in 2021 and CBN disbursements increasing in private sector financing, the CBN's share of private sector credit rose from approximately 6.5% in 2019 to 10% in 2021.