The Central Bank of Nigeria has ordered commercial banks to give agricultural and manufacturing sector loans at an interest rate of 9 per cent.
That’s coming as the CBN will now be refunding Cash Reserve Ratio, (CRR), to banks that fund projects in those two sectors.
CBN Director of Banking Supervision, Ahmed Abdullahi said this was part of the resolutions of the Bankers’ Committee meeting held in Lagos.
Ahmad said the outlook for the economy in 2018 is much better than 2017, and with this move,banks should be able to lend to companies that are doing new capital expenditures and expansions to factories using some of their CRR at nine per cent.
At the moment banks give out loans at 25% interest rate.The apex bank hopes this development will also create more jobs.