2009-06-26 | BSD/DIR/GEN/CIR/03/011

Lending to All Tiers of Government and Their Agencies

The Central Bank of Nigeria revised its circular from April 15, 2002 regarding public sector credits. Banks are now to apply normal provisions of prudential guidelines to all public sector credits and limit such loans to a maximum of 10% of their total credit portfolio on-and-off balance sheet. This must be achieved by December 31, 2009 if the existing limit exceeds this new threshold. The CBN warns banks against non-performing public sector credits and advises them to exercise caution in extending loans, as it reserves the right to reintroduce measures to curb public sector loans should the banks fail to adhere to these guidelines.

Nigeria

Central Bank of Nigeria

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