Central Bank of Nigeria Retains 5% Interest Rate For Power and Manufacturing Sector loans

The Central Bank of Nigeria has retained interest rates at 5% per annum for power and manufacturing industries until March 2023. This is part of moves by the financial regulator to support and promote investment and activities in the two sectors deemed to be critical to the economy.

According to the CBN: “The MPC is of the view that rates on the development finance initiatives of the Bank should remain at five percent till March 2023.”

The 5% per annum interest rate is a form of subsidy for industry players who originally ought to pay an interest rate of nine per cent.

The decision to leave interest rates for intervention funds at 5 per cent, according to the CBN, was a measure to stimulate economic growth in critical sectors of the economy.

It will be recalled that the CBN’s monetary policy committee (MPC) had at its last review raised the monetary policy rate to 13% from 11.5% but this retention of 5% rate for the critical sectors is deemed significant as the sectors have signicant gestation periods