16 March 2020 – Central bank cuts interest rate from 9% to 5%

Type of Intervention: Executive Order, Financial and Economic
Sectors Involved: Central Bank, Finance/Economy
Level of Jurisdiction: National
Lead People/Agency: The CBN made the decision on this intervention and would work closely with Deposit Money Banks (DMBs) to ensure that the use of this forbearance is targeted, transparent and temporary, whilst maintaining individual DMB’s financial strength and overall financial stability of the system.

Overview: CBN cuts interest rate to 5%, directs banks to restructure loan terms. Addressing journalists in Abuja on Monday, Godwin Emefiele, the CBN governor, said the interest rate of its intervention programmes has been cut to 5% from 9%. The CBN hereby grants all deposit money banks leave to consider temporary and time-limited restructuring of the tenor and loan terms for businesses and households most affected by the outbreak of Covid-19 particularly oil & gas, agriculture, and manufacturing
Full details here: https://www.financialwatchngr.com/2020/03/16/cbn-cuts-interest-rate-to-5-directs-banks-to-restructure-loan-terms/

Type of Justification: Advice of INTERNAL government advisory committee or group, Learning from other jurisdictions
Source of Evidence or Justification: National – government, International – government
Evidence/Justification: The reduction in interest rate is to cushion the negative economic consequences of the pandemic on the people with the following policy measures.