CBN Ends Large-Scale Intervention Loans as Unpaid Debts Hit ₦4.69tn

 By Kehinde Awosina 




The Central Bank of Nigeria has announced that it will no longer pursue large-scale intervention lending programmes, signalling a major shift in the country’s monetary and development finance policy.


Governor Olayemi Cardoso revealed that about ₦4.69 trillion disbursed under previous intervention schemes remains unpaid, representing roughly 43 per cent of the total intervention funds released since 2010.


According to Cardoso, the huge volume of outstanding loans has placed significant pressure on the apex bank’s balance sheet and exposed deep flaws in the intervention financing framework adopted over the years.


The CBN governor explained that the bank’s new direction is aimed at restoring financial discipline and reducing dependence on subsidised credit facilities. He noted that prolonged intervention lending encouraged what economists describe as “moral hazard,” where borrowers engage in risky financial behaviour with the belief that losses would eventually be absorbed by the government or the central bank.


Over the past decade, the CBN introduced several intervention programmes targeted at agriculture, manufacturing, aviation, healthcare, and small businesses in a bid to stimulate economic growth and support key sectors. However, concerns have continued to mount over poor loan recovery, transparency issues, and the sustainability of the schemes.


Cardoso stressed that the apex bank would now focus more on its core responsibilities of monetary stability, inflation control, and strengthening confidence in Nigeria’s financial system rather than direct large-scale financing interventions.


The policy shift is expected to reshape how businesses and critical sectors access development funding, with greater emphasis likely to be placed on market-driven financing and private sector participation.

Comments

Post a Comment

Popular posts from this blog

Babalola Obisesan Rejects Pelumi Olajengbesi's Imposition as Accord Candidate, Threatens Legal Action

Image
 By Kehinde Awosina An aspirant of the Accord Party for the Obokun/Oriade Federal Constituency seat, Babalola Obisesan, has rejected the emergence of Pelumi Olajengbesi as the party’s candidate ahead of the 2027 general elections. Obisesan described the process that produced Olajengbesi as undemocratic and contrary to the principles of fairness and transparency expected within the party. According to him, the selection process was allegedly influenced by only a few individuals, denying party members and supporters across Obokun and Oriade the opportunity to freely decide their preferred candidate through a credible democratic exercise. The Ijebu-Jesa-born politician lamented that the development violated internal democratic values and disenfranchised party loyalists who expected an open and fair process. He further alleged that the action contradicted electoral principles and civic rights, warning that he may seek legal redress to challenge the emergence of Olajengbesi as the party...
Read more

Five Months Without Salary: Obokun LG Education Board Member Resigns, Joins APC in Protest Move

Image
By Kehinde Awosina  A member of the Obokun Local Government Education Board, Engr. Philip Ayodele, has officially resigned his appointment, citing the non-payment of five months’ salary arrears running from May to September 2025. Ayodele, who hails from Ipetu-Ile Ward 02 in Obokun Local Government Area, said his decision followed prolonged neglect of his entitlements despite repeated efforts to resolve the issue through formal channels. He alleged that several letters written to the appropriate authorities on the matter were ignored without any meaningful response, describing the situation as unfair and discouraging. In a major political development, the former board member also announced his decision to join the All Progressives Congress (APC), aligning with Hon. Oluwole Oke, who represents the Obokun/Oriade Federal Constituency in the House of Representatives. Ayodele said his defection was driven by what he described as “neglect of rights and lack of responsiveness” from the rel...
Read more

From Seven UTME Attempts to Medical Doctor: The Inspiring Journey of OAU Graduate, Dr Omoboriowo Damilola Isaac

Image
 By Kehinde Awosina  For many students, failure in examinations often feels like the end of a dream. But for Omoboriowo Damilola Isaac, every setback became another reason to keep pushing forward. The young medical doctor, who recently graduated from Obafemi Awolowo University with an M.B.Ch.B degree in Medicine and Surgery, has become a source of inspiration to many after sharing his emotional journey from repeated JAMB failures to academic success. Popularly known on campus as “Dr. Bush” and “Celebrity Teacher,” Damilola’s story is one of resilience, determination, and unwavering belief in his dreams. Beyond academics, he also distinguished himself as a student leader, serving as President of the Great Ife Students’ Union during the 2024/2025 academic session. He equally founded “Peak Tutors,” a tutorial platform dedicated to helping JAMB candidates and undergraduates excel academically. Originally from Ekiti State, Damilola revealed that his journey to studying Medicine was...
Read more