CBN orders banks to remove interest rate, CAP on goods and services

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Business News

September 11,2019

The Central Bank of Nigeria has directed all financial institutions and mortgage banks to eliminate interest rate and lending fees on goods and services rendered to customers. In a circular signed by the Director, Financial Policy and Regulations of the bank, Kelvin N. Amugo, the apex bank said the decision was taken to ease business transactions. “Our attention has been drawn to implementation challenges with respect to part 2 section 2.1.3 (A&B) mortgage finance in respect of the maximum cap and MPR+ 5per cent placed on mortgage finance rates. “The CBN after due consideration of stakeholders hereby amend part 2 (A&B) interests rate and lending fees subsection 2.1.3 mortgage finance to read ‘Negotiable’ subject to a maximum MPR + 5per cent is no longer applicable”, Amugo said. The CBN director of financial policy also said the new policy takes effect from September 9th 2019. The CBN in 2017 had issued the guide to charges by banks and other financial institutions to moderate charges on various products and services offered by banks and other financial institutions.

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